Sending Emojis Is Considered Financial Advice
Former SEC chief, Lisa Braganca, warned that using emojis could have legal consequences.
A judge in the United States District Court for the Southern District of New York has ruled that the use of emoticons such as the rocket ship, stock chart and money bag signify "financial return on investment"; i.e., financial advice, according to a recent court filing.
Lisa Braganca, who was the head of the United States Securities and Exchange Commission (SEC), warned users via Twitter that using emoticons that can imply future profits, can have legal implications. In a published tweet, she wrote, "A federal court judge ruled that these emoticons objectively mean one thing: financial return on investment. Users of these emojis are hereby advised of the legal implications of their use."
Braganca's tweet included a link to a court filing in which federal court Judge Victor Marreo denied Dapper Labs' motion to dismiss an amended complaint, alleging that its NBA Top Shot Moments violated safety laws.
In the filing, Judge Marreo pointed out that some tweets posted by NBA Top Shots contained emoticons that denote financial returns. They wrote that, "Although none of the tweets include the word 'profit,' the 'rocket ship' emoji, the 'stock chart' emoji, and the 'money bags' emoji objectively mean one thing: financial return on investment."
The general counsel of the NFT platform, Enjin, Oscar Franklin Tan, commented on the issue and said that this decision by Dapper Labs should not create a "dangerous rule that makes NFT emojis securities." He also explained that, "Courts should protect edgy and free-thinking messages in NFT communities because shitposts and emoticons are also part of free speech."
According to Tan, this is the same as allowing sneaker salesmen to use the catchphrase "FOMO" (Fear of Missing Out) and use the emoji cited in this case.
After the tweet was posted, there were various reactions from members of the crypto community. One user called the message "tragic," while another user noted that freedom of speech no longer applies to emojis.
On February 23, lawyers also reacted to the judge's decision. US attorney Jake Chervinsky said that to consider assets on private blockchains as securities "would be absurd." Chervinsky explained the ruling could turn every major game developer, ticketing platform and reward program into companies that must be regulated by the Securities and Exchange Commission.
A similar case has already happened, back when the SEC was investigating Terra. On February 17, cryptocurrency lawyers took to Twitter to comment on the SEC's accusation that Terra was selling a set of cryptocurrency securities. Mike Selig, a lawyer for a Web 3.0 company, said that by that logic, anything can be considered a security, while attorney Justin Browder called the Securities and Exchange Commission's practice "wild."
Source: cointelegraph.com
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A judge in the United States District Court for the Southern District of New York has ruled that the use of emoticons such as the rocket ship, stock chart and money bag signify "financial return on investment"; i.e., financial advice, according to a recent court filing.
Lisa Braganca, who was the head of the United States Securities and Exchange Commission (SEC), warned users via Twitter that using emoticons that can imply future profits, can have legal implications. In a published tweet, she wrote, "A federal court judge ruled that these emoticons objectively mean one thing: financial return on investment. Users of these emojis are hereby advised of the legal implications of their use."
Braganca's tweet included a link to a court filing in which federal court Judge Victor Marreo denied Dapper Labs' motion to dismiss an amended complaint, alleging that its NBA Top Shot Moments violated safety laws.
In the filing, Judge Marreo pointed out that some tweets posted by NBA Top Shots contained emoticons that denote financial returns. They wrote that, "Although none of the tweets include the word 'profit,' the 'rocket ship' emoji, the 'stock chart' emoji, and the 'money bags' emoji objectively mean one thing: financial return on investment."
The general counsel of the NFT platform, Enjin, Oscar Franklin Tan, commented on the issue and said that this decision by Dapper Labs should not create a "dangerous rule that makes NFT emojis securities." He also explained that, "Courts should protect edgy and free-thinking messages in NFT communities because shitposts and emoticons are also part of free speech."
According to Tan, this is the same as allowing sneaker salesmen to use the catchphrase "FOMO" (Fear of Missing Out) and use the emoji cited in this case.
After the tweet was posted, there were various reactions from members of the crypto community. One user called the message "tragic," while another user noted that freedom of speech no longer applies to emojis.
On February 23, lawyers also reacted to the judge's decision. US attorney Jake Chervinsky said that to consider assets on private blockchains as securities "would be absurd." Chervinsky explained the ruling could turn every major game developer, ticketing platform and reward program into companies that must be regulated by the Securities and Exchange Commission.
A similar case has already happened, back when the SEC was investigating Terra. On February 17, cryptocurrency lawyers took to Twitter to comment on the SEC's accusation that Terra was selling a set of cryptocurrency securities. Mike Selig, a lawyer for a Web 3.0 company, said that by that logic, anything can be considered a security, while attorney Justin Browder called the Securities and Exchange Commission's practice "wild."
Source: cointelegraph.com
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