Did Stellar (XLM) Break Securities Law with Coin Burn?

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The Stellar (XLM) coin burn, announced last week, may bring attention to the asset as potentially breaking the US SEC’s securities law. XLM Burn Raised Burning Questions A Reddit poster speculated that the decision to burn 55 billion XLM coins may attract the attention of regulators. The decision of the Stellar Development Foundation to decrease its funds resembles governance of stock issues, suggested the poster. At the moment, the US Securities and Exchange Commission may be involved in multiple cases where a decision would be warranted on the security status of a token or coin. There are very few assets that have been cleared of the security status. And in most cases, the SEC sanction is a fine, as in the case of $24 million levied against Block.One and the EOS project. Currently, digital assets are assigned security status based on the Howey test. The three conditions are that the…

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