Social media giant Reddit is preparing to go public, a move that offers valuable insight into the perception of cryptocurrency regulation by major Silicon Valley companies. Although it holds an "insignificant" amount of bitcoin (BTC), ether (ETH), and Polygon (MATIC), its emphasis on cryptocurrencies is considerable.
A revealing IPO
Reddit's announcement to integrate BTC and ETH into its corporate treasury highlights its forward-thinking approach to cryptocurrencies. Unlike the “bitcoin only” strategy adopted by many of its peers, Reddit displays a notable openness towards various digital assets, suggesting a recognition of their value and potential.
Assumptions about crypto
Reddit's assumptions about the crypto world, revealed in its SEC filing, are particularly intriguing. In particular, the company considers the native Ethereum token to be unlikely to be a security, based on public statements from the SEC and other regulatory bodies. This position, while cautiously expressed, marks a significant viewpoint given the current regulatory uncertainty surrounding ETH.
Regulations shape Reddit's approach
Current regulations already heavily influence how Reddit interacts with cryptocurrencies. For example, the SEC's SAB 121 rule, which requires companies to maintain an amount of assets equivalent to those held by users on the platform, does not directly affect Reddit due to the non-custodial nature of his crypto experiments. Still, this and other rules determine the types of crypto projects U.S. companies can consider.
