Could The Security And Exchange Commission Go Against Ethereum And Ripple?

securities exchange commission sec

A lot of cryptocurrency investors and enthusiasts out there are used to a mix of bad and good news. The news this time around is not that good. The digital currency market made it to the headlines earlier this month when a former regulator in the United States stated that Ethereum and Ripple are illegal, he said they are noncompliant securities.

The Possible Effect of This News

This bad news could mess things up for digital currency markets and weaken the liquidity of both Ethereum and Ripple. But it is not over yet. According to reports, it would seem right now that authorities will not be taking regulatory and monetary measures against the trade of digital currencies anytime soon.

SEE ALSO:   Cryptocurrency News Today: Members Of United States Congress To Disclose Cryptocurrency Investments

The Present Available Information

The primary purpose of initial coin offerings (ICOs) is for fundraising in order to create an online service (Telegram used the same method, and it worked). ICO offered tokens are redeemable in time. Shareholders of initial coin offerings deem these tokens as a hope to earn more so that more sales will help them and result in profits.

However, some initial coin offerings have been full-fledged frauds. The regulators in the United States have been slow when it comes to the regulation of this market, but the regulators have issued several warning (most notably in July 2017).

The head of the Security and Exchange Commission – Jay Clayton sent out a notice that all sales of tokens must be considered as a security transaction. As if the Security and Exchange Commission goes against Ethereum and Ripple (two relevant digital currencies) it could result in an ugly situation in altcoin markets.

SEE ALSO:   Rick Hilton Set to Sell a 16th Century Mansion through Blockchain Auction

Observers Share Their View about SEC

Some market observers think that the SEC has issues against Ripple and Ethereum. But the overall consensus is that the Security and Exchange Commission does not actually want to go against the crypto market, they have a lot more to do.


Legal Disclaimer: The content of this website ( is intended to convey general information only. This website does not provide legal, investment, tax, etc advice. You should not treat any information on as a call to make any particular decision regarding cryptocurrency usage, legal matters, investments, taxes, cryptocurrency mining, exchange usage, wallet usage, initial coin offerings (ICO), etc. We strongly suggest seeking advice from your own financial, investment, tax, or legal adviser. Neither nor its parent companies accept responsibility for any loss, damage, or inconvenience caused as a result of reliance on information published on, or linked to, from

SEE ALSO:   NEM price predictions 2018: Cryptocurrency will grow with complete stability - NEM/XEM USD price -XEM News Today -Sat Jun 23

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get Smart About Crypto!

Promise we won’t spam you!

We Are Hiring

Click here if you would like to join one of the fastest growing blockchain news companies in the world!