Crypto Update: The U.S. Securities and Exchange Commission Officially Withdraws Their Claim That Ethereum Is a Security

Ethereum (ETH) isn’t a security, at least from the perspective of William Hinman – the director of corporative finance of the United States Securities and Exchange Commission (SEC). Addressing the audience at the Yahoo All Markets Summit: Crypto conference which took place in San Francisco, Mr. Williams Hinman said that the SEC does not see so much value in treating Ethereum as a security today.

Decentralization Is Key

Hinman further explained that as a result of the fact that there is no central group or individual responsible for the development, sales, and maintenance of Ethereum, and hence “the digital currency may not be a representation of an investment contract.”

SEE ALSO:   Cardano Price Prediction: ADA to Increase by 8,000% by the End of This Year - News Today - Fri Aug 17

These statements are the most recent in the long line of remarks that found a lot of regulatory officials haranguing on whether the sale pattern in which the digital currency was issued subjected it to the United States securities laws.

Views such as these have been advanced greatly by previous regulators, while the Securities and Exchange Commission has spoken derogatorily and generally about its treatment of the sales of digital currencies and Initial Coin Offerings.

Hinman’s Remark

In pre-written remarks earlier today, William Hinman said: “based on his understanding of the current state of ETH, the Ethereum platform, as well as its decentralized structure, sales of tokens, and present offers are not securities transactions.”

SEE ALSO:   Cryptocurrency Ratings: Ethereum and EOS (B), Steem, Neo and Cardano (B-), Bitcoin, Dash and Litecoin (C+), Monero and Ripple (C), Bitcoin Cash (C-) / Digital Currency Ratings - Fri Aug 17

Hinman also warned that the analysis of whether a digital currency or an ICO is a security isn’t static and doesn’t strictly inherent to the instrument, and that even ICOs and cryptocurrencies with utility that functions strictly as an exchange means a decentralized platform could be packaged and sold a means of investment which can be security.

Mr. Hinman also pushed back on some digital currency sales that claim to be utility assets and not security assets, saying that simply tagging a digital currency a “utility asset” doesn’t turn the digital currency into an asset that isn’t a security.

SEE ALSO:   IOTA (MIOTA) Price Prediction: MIOTA to Rebound to the $5 Level or More This Year [MIOTA Price Forecast 2018] News - Fri Aug 17


Please enter your comment!
Please enter your name here

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