A top U.S. SEC official has provided some clarity regarding how digital currencies and ICOs should be regulated. According to a senior US SEC official, Ethereum and Bitcoin are no longer securities, this means they do not have to comply with the requirements of the United States on registration, accreditation, and disclosure of investors.
During the announcement, the regulator did not talk about Ripple (XRP), a digital currency that is highly promoted by the Ripple firm. Digital currencies have been in a bear market this year, and this has caused a lot of digital currencies to lose a great percentage of their values.
The Effect of the Announcement
Bitcoin has lost 50 percent of its value as result of the bears in the market, but the value of ETH and BTC have started experiencing an upward movement since the SEC announced that they are not securities on the 14th of June.
Adam White’s Comment
Ripple, which like all digital currencies tends to be highly volatile, diverged from Ethereum and Bitcoin – according to CoinDesk prices. June 14th is going to be remembered as a momentous day – says Adam White – the general manager at Coinbase (a digital currency exchange platform).
He also said that the news that Ethereum is no longer regarded as a security gives the digital currency industry the confidence to embark on more projects. One of those projects could be the futures of Ethereum at Cboe – a derivatives exchange based in Chicago.
The digital currency trading platform has long been considering futures for Ethereum since it began a contract for Bitcoin (BTC) last year, according to President Chris Concannon.
As for Ripple’s XRP, Brand Garlinghouse (the CEO of Ripple) said in an interview that “it is very obvious that XRP is not a security.” He said that the digital currency exists independently of the company – Ripple. Despite his claims, XRP has is still considered a security by the US SEC.