CBSR · research with explicit boundaries
Narrowing the Section 404 Prohibition | CBSR research summary
A dated policy proposal for distinguishing user-initiated stablecoin routing into registered investment products from disguised passive yield.
Proposal and method
The author proposes a NAV-based principal-risk threshold and four audit metrics: authorisation density, disclosure granularity, user control and activity coupling. The argument asks who authorises each transaction and who bears investment losses. These are proposed analytical tests, not regulator-approved compliance criteria.
Source locator
Read the executive summary and recommendations on PDF pages 2–3, then the principal-risk and metrics discussion in Sections IV–VI. Later legislative or rulemaking developments require separate review.
Read and cite the original
Cite the exact version you read. This explanatory HTML is not a new edition of the paper, an independent review, or a claim that later legal developments validate the original argument.