When reports came to light that a high-ranking official of the US Securities and Exchanges Commission made a public statement that put the debate regarding whether Bitcoin and Ethereum are securities or non-securities (because of their decentralized nature) to bed, it immediately affected cryptocurrency prices. The official said both crypto tokens are non-securities. In an interview IOHK’s Charles Hoskinson spoke on the impact the SEC’s regulations would have on the crypto-market.
How Experts Think The SEC’s Decision Will Impact the Crypto Market
When asked about his take on the SEC’s public statement, Hoskinson expressed the challenges related to partnering with entrepreneurial, and experimental projects. According to him, it’s like “staying in a gray legal region” where you will have the freedom to decide or interpret the laws based on a more innovation-friendly and entrepreneurial way. Hoskinson added that the Securities and Exchange Commission’s regulations are not stable; they may change according to the movement in politics.
He observes that the theory of decentralization is emerging to verify the security status where the authorities are surprised regarding the tokens that are actively traded live in the secondary market. According to Hoskinson regarding suggestions to the regulatory body, he would love to see the SEC take a clear stand on digital tokens traded in the secondary market and declare them non-securities.
This according to Hoskinson will give more clarity to retailers, crypto exchanges, and investors, and to prevent them from capitalizing or building on “quicksand”.
Hoskinson serves as both the Co-founder and CEO of IOHK (Input-Output Hong Kong) a technology startup founded in 2015. IOHK utilizes peer-to-peer innovations to efficiently offer financial services around the world. They build digital currencies and Blockchains for government entities, academic institutions, and corporations. Ethereum Classic and Zen Cash are just two examples, while Cardano is arguably the most known digital coin built by them.