Ethereum Rises Amid SEC Statement Although …

Ethereum Rises Amid SEC Statement Although …

Ethereum grows amid SEC statement

While many will not take the announcement as a surprise, a senior official from the US Securities and Exchange Commission confirmed that transactions in Ethereum are not regulated by federal securities laws..

“As far as I understand the current state of ether, the Ethereum network and its decentralized structure, the existing offerings and sale of ether are not securities transactions,” said William Hinman, head of the SEC’s corporate finance division. “Applying Securities Laws to Ether Provides Little Benefit”.

Earlier, the head of the SEC Jay Clayton said that cryptocurrencies like bitcoin are not securities, but his department had not previously indicated its position in relation to other digital assets, which gave rise to a lot of speculation.

Although the significance of this statement in the context of regulation and taxation has yet to be analyzed by experts, the cryptocurrency market has eagerly responded to the latest news..

“If there is a centralized structure, and the purchase is associated with the expectation of profit, then this is most likely a security,” Hinman was quoted as saying by CNBC. “The key point here, of course, is that ether is decentralized.”.

Ethereum Rises Amid SEC Statement Although ...

“Can a digital asset, which was originally sold as a security, subsequently be sold as something other than a security?” – asked Hinman. “What if the company stops participating in its distribution? I think in this case the answer will be yes “.

Hinman also noted that the SEC does not take into account the form of the proposal, but its essence. Economic reality is more important than name, he added. If the network is sufficiently decentralized, and the purchase of a cryptocurrency is no longer conditioned by the expectation of profitability from the actions of third parties, then it is not a security. Likewise, the names “coin” and “token” do not exempt their issuer from liability if these instruments have characteristics of a security, he explained..

Earlier, the co-founder of the Ethereum Foundation, Joseph Lubin, said that he was not worried about rumors about the SEC’s interest in ether, since he was sure that cryptocurrency was not a security..

Ethereum Rises Amid SEC Statement Although ...
Ethereum Rises Amid SEC Statement Although ...

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