There was a heated discussion last night in one of the rarepepe channels on telegram. Some pepe artists and collectors fear that rareaf.com will bring unwelcome attention from U.S. regulatory authorities and that I will surely get in trouble with the S.E.C.
These fears are understandable.
In this post, I will explain my thinking regarding regulation.
The RareAF Buyers’ Club is just that - a club. I don’t charge a management fee. I don’t take a bonus on profits. I share in profits proportional to the rareaf tokens I hold. It is meant to be a cooperative effort. I make buy and sell decisions on behalf of the club members to the benefit of the club members.
The Club doesn’t manage money. We trade one token (pepecash) for another (say SANDWICHPEPE). Digital trading cards is one thing rarepepes are meant to be. What they actually are is not yet clear. If a regulatory body gets involved we will comply with their directives. I have been proactive in finding out what we need to do concerning regulation. I’ve notified the S.E.C. of what I’m doing regarding rarepepe.gallery and rareaf.com and asked for their input. I’m waiting to hear back from them.
I agree that we are in murky waters. That, in itself, is not reason to believe we are doing anything illegal or wrong. The Buyers’ Club wouldn’t even have been possible just a few years ago. It shouldn’t be surprising that the regulatory framework is incomplete.
I will keep club members and the rarepepe community as a whole up to date with any interactions with the S.E.C. or any other regulatory body.