- Ether continues to show promise in the market as regulators plan to decide its fate on Monday, May 7th.
On the 7th of May, the SEC and CFTC officials are going to sit in a meeting to determine the fate of the second largest cryptocurrency in the world, Ethereum. The meeting aims to determine if Ethereum should be considered as a security like stocks.
The cryptocurrency community is eager to hear the announcement by the regulators which is challenging the $800 price barrier of ETH.
The Regulators Vs. Ethereum
Earlier in the month, Wall Street Journal reported that the Commodities Futures Trading Commission and the Securities and Exchange Commission were making plans to decide the status of Ripple and Ethereum. Irrespective of the news, Ether’s price has surged by 14% over the last seven days.
The regulatory classification of Ripple and Ethereum is a divisive topic in the cryptoverse. High profile trade groups have reportedly been putting pressure on the SEC to develop what is referred to as a “safe harbor” classification for Ether.
Co-founder of Ethereum, Joseph Lubin, during an interview with TheStreet, said that he wasn’t concerned about Ether being classified as a security but noted that the regulatory status of ETH will seriously influence future projects.
Christopher Giancarlo, the chairperson of the CFTC, during a conference last month, said that the Commodities Futures Trading Commission was struggling to apply regulatory laws of old assets on new assets such as cryptocurrencies.
Michael Piwowar, the Commissioner of SEC, said something similar to what Christopher Giancarlo said emphasizing that cryptocurrencies that are launched through initial coin offerings are securities in his opinion.
If the outcome of the meeting is favorable toward Ether, the price will surge higher. There are chances that Ethereum will not fall under the SEC’s regulatory scope. However, it is important that the United States regulatory authorities make the public aware of their formal position on cryptocurrencies as this will cement the cryptocurrencies into the paradigm shift.