On Thursday, a top-ranking official at the United States Securities and Exchange Commission declared Ethereum (ETH) and Bitcoin (BTC) as non-securities. The top official – William Hinman said Ethereum and Bitcoin are not securities because of their decentralized nature.
The Impact of the Regulation on the Digital Currency Market
Tone Vays had a discussion with Charles Hoskinson of IOHK regarding the impact of the regulations of the Security and Exchange Commission on the digital currency market. When asked about his general opinion regarding the public statement of the US SEC, he articulated the challenges with being an aspect of experimental, entrepreneurial projects.
According to Charles Hoskinson, it’s like “living in a gray legal territory” where an individual has the freedom to interpret the laws in a more innovative-friendly and entrepreneurial way. He also said that these laws are permanent, as regulations change with the changes in politics.
Based on his observations, he stated that the idea of a decentralization test is evolving for security status where regulatory bodies are stumped concerning the actively traded digital currencies that live on the secondary marketplace.
He also said that he would like the Securities and Exchange Commission to take a clear stand on digital currencies trading in the secondary marketplace and declare them as non-securities.
He said: “…SEC, as far as they are concerned, if you want this to be categorized; these digital currencies that are trading in the secondary marketplace are not going to be regarded as securities. Perhaps they are something else such as commodities, but they aren’t securities.”
This will give the clarity to trading platforms, investors, and retailers and prevent them from building on “quicksand.” Charles Hoskinson is the co-founder and CEO of Input-Output Hong Kong (IOHK) – a tech firm founded back in 2015. They build digital currencies and blockchains for government entities, academic institutions, and corporations.