The traders of Ethereum and bitcoin learned earlier yesterday (June 14th) that the digital currencies will no longer be regulated by the US SEC as securities. Bitcoin (BTC) and Ethereum (ETH) finally got the news they have been looking for to move their values higher, and the news came on Thursday, June 14 from a key official of the US SEC (Securities and Exchange Commission).
The Announcement of William Hinman
The head of the Corporate Finance Division of the US Securities and Exchange Commission – William Hinman, said that Ethereum and Bitcoin shouldn’t be regulated as securities, nevertheless, other digital currencies and Initial Coin Offerings are likely to be securities.
The announcement of Hinman is considered to be the official position of the U.S. SEC. For a lot of digital currency buffs and investors, this news was a good music to their ears, causing them to invest more. At the time of writing, the value of Ethereum has increased by about 8.31 percent while that of Bitcoin (BTC) has increased by about 5.26 percent.
The Speech That Ruffled the Crypto Universe
William Hinman addressed the issue when speaking at the Yahoo All Markets Summit: Crypto event in San Francisco. When addressing the audience, he said that while Ethereum and Bitcoin are no longer considered as securities, other digital currencies, as well as Initial Coin Offerings were securities.
He further stated that determining whether a digital currency or an ICO is a security all boils down to the way the token is promised, created, sold, and behaves. He also sees decentralization as the key to figuring out if a token is a security or not.
He said one of the major reasons why Ethereum and Bitcoin are not securities is because they are not centralized, this means they are decentralized platforms which are not controlled or owned by an individual or a group.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.