Mazacoin’s Unique Sovereign Status Trumps SEC Alleged Regulatory Jurisdiction Over Emerging Inter Tribal Capital Market Development
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For decades, Indigenous Native American tribal nations have suffered in crippling poverty and have struggled to find a solid means to make a positive impact on our tribal economies until now.
Mazacoin was developed by Payu Harris and a fellow colleague in December 2013 as an intertribal cryptocurrency asset with a targeted focus of helping tribes develop a solid monetary policy and rebuild tribal economies as a free and sovereign emerging nation-state.
Tribes and tribal members seeking access to business development capital are largely locked out of the ability to gain status as an accredited investor as per current SEC guidelines for Reg D offerings due to requirements which are far beyond the ability for most tribal members. This lack of ability to become an accredited investor means tribal members are unable to participate in tribal-based ICOs as well as global ICO’s when they’re offered. But the question comes into the equation, does the SEC, FinCen, and other federal regulatory agencies have the jurisdiction to interfere with the functions of a free and independent tribal nation.
Tribal nations enjoy their own government structure, laws and Congress has stated repeatedly that tribes are in fact independent sovereign nations and federal agencies must first ask permission to even enter most reservations, Native American tribes are able to own and run their own tribal casinos, grow Hemp and Marijuana within tribal reservation boundaries. So its hard to believe the SEC would even think it had any type of jurisdiction with regards to tribal economies or financial affairs. In short, they do not have any jurisdiction nor regulatory authority over tribal economies. A new proposed rule change to SEC Reg D guidelines have an interesting potential impact for Mazacoin and tribal tokenized assets.
- Any American Indian Tribe, or any entity in which all of the equity interests are owned by an American Indian Tribe, with non-trust assets2 in excess of $5 million. (proposed rule change)
- Non-Trust Assets are defined as any assets currently under the direct control of the American Indian Tribe, or entity owned by the American Indian Tribe, and not held in Trust for the Tribe by the United States Government through the Trust Responsibilities delegated to the United States Bureau of Indian Affairs. (1)
With Mazacoin being a de facto tribal currency, any tribe with $5M worth of MZC and/or Tribal Tokenized asset (s) would be able to class those assets as a “ Non Trust” asset and the tribe would then be reclassed as an accredited investor and potentially individual tribal members as well within the tribe.
(Trust and Non-Trust refer to the trust status tribes have with the federal govt whereby the dept of interior maintain and manage tribal resources and specific assets on behalf of the tribes)
One question develops as who determines the asset value needed to meet the $5M asset value requirements. Example: a tribe has 10M Mazacoin and they value each MZC at $1 so for that tribe their tranche of MZC would have an asset value of $10M. However, the Dept of the interior may value MZC at .1/100 of a cent and therefore the tribes’ position would only be $100,000. This is why it is critical for tribal nations to step up to the plate and begin developing concrete and strategic inter tribal monetary policy with an internal currency platform that works for them and addresses their most current needs as far as economic development.
Agencies such as the SEC, FinCen, US Treasury and others openly admit that the idea of inter-tribal currencies and capital markets are a “grey area” largely because of the fact that up until this point in time tribal nations have been content to rely solely on the US Dollar as their reserve currency and were under the belief that developing a tribal currency was out of reach for them. Mazacoin launched in early 2014 as a tribal currency which was a absolute game changer for tribes but was a victim of being too far ahead of its time tribes were unfamiliar with blockchain technology and still under the belief that Bitcoin was illegal which is what several tribal leaders were being told by federal authorities as a means to dissuade them from looking into Cryptocurrencies as a legitimate means for economic growth and development, this was largely why Mazacoin has been at a low price point until now.
Tribal Enrollment as a AML/KYC requirement
Enrolled tribal members have a unique enrollment number which identifies them as a certified enrolled tribal member for their home tribe. For example, mine is U207-0059043 Native American tribal member are the only minority group in the US which have this specific enrollment system which is part of an overall federal database with the Dept of Interior office of Indian affairs. This means that Native American MZC traders who are enrolled with a federally recognized tribal nation already have their identities known by federal authorities through the Dept of Interior this completely covers the necessary requirements for all current KYC (Know Your Customer) ID requirements.
So in short, Native American tribal nations are in a perfect position to capitalize on the current Cryptocurrency markets as well as the development of tokenized asset allocations as part of an overall economic development strategy for tribes. This ALSO is a potential boon for outside investors who are looking for new emerging markets to invest in and take part in the development of. It’s time for Federal agencies to take a step back, recognize and respect tribal sovereignty and time for tribes to look past the idea of tribal casinos and begin developing our own currency and capital markets so we can better build a strong and secure financial future for ourselves and generations to come.
For more information, visit: https://www.mazacoin.org/
ref: “Native American Capital, LP A Private Equity Fund Serving Indian Country
Policy Briefing: Native American Tribes Require Reg D Change”
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