In this case, Prosper should have addressed this early on. They should
have either complied with existing interpretations of securities laws,
or challenged their relevance to prosper directly right from the
start.
If I understand the C & D correctly:
"The notes offered by Prosper are securities pursuant to Section 2(a)
(1) of the Securities Act and under the Supreme Court’s decisions in
both SEC v. W. J. Howey Co., 328 U.S. 293 (1946), and Reves v. Ernst
& Young, Inc., 494 U.S. 56 (1990). "
Is an objection by SEC to Prosper activities based on the claim that
loans are investment vehicles, and subject to securities regulations,
and Prosper is apparently not registered as a securities exchange with
SEC.
Prosper should have addressed this long ago. Prosper should have
challenged these sections or SEC regulation in court, or they should
have complied and registered exchanges (loans) as securities. Would it
have been to expensive to do so? I have no idea. How could Prosper
have challenged the sections mentioned in the C & D? I also have no
idea. But, I think Prosper could have learned about these regulations
by direct communication with SEC.
(When exploring experimental economic models, one of the first things
that I do is consult SEC regulations (or people)
and state/local regulations.)
On Nov 26, 4:04 pm, "Pelle Braendgaard" <
pel...@gmail.com> wrote:
> Yup, more need than ever for innovation and they do this. I blogged
> about why it happened here:
>
>
http://stakeventures.com/articles/2008/11/26/sec-to-startups-dont-you...
>
> And what can be done to fix it here:
>
>
http://stakeventures.com/articles/2008/11/26/3-ideas-for-innovating-s...
>
> Pelle
> --
http://agree2.com- Reach Agreement!
http://extraeagle.com- Solutions for the electronic Extra Legal worldhttp://stakeventures.com- Bootstrapping blog(