Cryptocurrency investors and enthusiasts alike all breathed a sigh of relief when an SEC official said neither Ether nor Bitcoin is classified as securities. The reveal by the Securities and Exchange Commission quickly impacted crypto prices as it was gathered that some of the top 100 virtual currencies recorded a 10% increase. The cryptocurrency ecosystem had initially been in limbo in recent months over the SEC’s deliberation regarding whether Bitcoin and Ethereum are securities or not.
If Ether were to be classified as securities, it would have sharply dropped in value and prices. Big money investors wouldn’t go near the network. Crypto experts and enthusiasts are convinced that the Securities and Exchange Commission is beginning to open the digital asset industry. This decision means the SEC has decided to be a little lenient in its regulation of the digital token industry.
How Will Institutional Investors React?
With this news, the digital asset community can invest in top coins. However, the reaction of institutional investors must not be overlooked. Fund Managers and Wall Street companies have been cautious regarding investing in digital assets according to history. But this year may be the difference. The consensus among the top investor population is positive hence many top guns will be open to making substantial crypto investments.
Joe Lubin Ethereum’s co-founder and the founder of CosenSys has lauded the decision reached by the SEC. Goldman Sachs has indicated that they are going to offer Bitcoin futures later in the year.
Ethereum Futures May Be The Stepping Stone
According to Chris Concannon, Cboe Global Markets president, Ethereum Futures may be launched sooner than anticipated. As result of the SEC’s decision, Concannon has indicated that ETH futures will likely come sooner because the SEC does not consider the digital asset a security.
This report is good for the crypto token sector. However, the broader market await the SEC’s deliberation about Ripple’s XRP token. Should it be deemed not securities, the atmosphere around the digital asset community will significantly improve allowing top investors to flood the market.