So, I was speaking with my lawyer brother (former US ADA, prosecuted guys for fraud) about bitcoin and other cryptos. When I described the DAO, he, in no uncertain terms, termed the setup illegal.Someone created a contract that offer unregistered securities. That person or group would be target number one. If they are beyond the reach of the US law, then so be it.That currently the Ethereum/DAO community is so small makes this situation doubly bad for the DAO. The main claim it could make for its legality is that the organization is so distributed that no one controls it. But if a developer rolls-back anything, stops investment, stops divestment, etc, they are exercising control - right?Other thoughts...Will generic DAO rules become sophisticated enough to firmly establish decentralized control? Will unrealized (fiat) gains on crypto currencies be taxable? Will the government be able to track finances an age of "black" money transfers?If every person and company could act as a "cash" only enterprise, where will taxation come in? Self-reporting? Why not under-report 10%? 20%? There would be no "clue". You would have to be doing something else illegal to warrant the type of scrutiny that would be needed to verify your tax reporting.I just wonder what a "dark" bitcoin economy would look like. via /r/Bitcoin http://bit.ly/29zLY2C
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