After SEC’s Announcement, Kyle Samani Says EOS Is a Utility, While IOTA (MIOTA), Tron (TRX), and Ripple (XRP) Are Securities

SEC

The Managing Partner at Multicoin – Kyle Samani, put down his reasons for why the five most valuable digital currencies are securities. This came after the United States Securities and Exchange Commission took a fairly concrete stand on the position of digital currencies as securities.

All Markets Summit

During the All Markets Summit which was hosted by Yahoo Finance in San Francisco on the 14th of June, the head of Corporate Finance Division of the US SEC – William Hinman said: “if the network on which the digital currency or Initial Coin Offering is to operate is sufficiently decentralized, where buyers would no longer expect a group or an individual to carry out vital entrepreneurial or managerial efforts – the digital currency or ICO may not represent an investment contract.”

Ethereum Is Not a Security

Regarding this quote, Samani set out to figure out which amongst the top ten digital currencies were securities. This quote clearly states what the U.S. SEC considers a security. Ethereum was considered to not be a security as a result of the multiple implementations of the client.

While the Ethereum Foundation built three of the four most widely utilized implementations, the Parity was created by the Parity Foundation. The Parity client involves 33.33 percent of the market shares, making ETH sufficiently decentralized.

Samani went ahead to say that Bitcoin Cash (BCH), Litecoin (LTC), and Ethereum Classic (ETC) were not securities as a result of their similarities to Ethereum and Bitcoin, which were already announced as non-security tokens. On the other hand, he said that Ripple (XRP) is almost undoubtedly a security, as there was only one implementation and 60 percent of the digital coin (XRP) is owned by Ripple.

The platform exists to facilitate transactions driven by the software of Ripple, and the digital currency is sold in an open market. This disqualifies it as a security –according to Samani.

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.

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