The US SEC has again clarified its position on both Ethereum and Bitcoin, stating that neither cryptocurrencies are securities.
The announcement, made by SEC Corporate Finance Division head William Hinman, has addressed one of the most pressing issues in the crypto market at the moment, has catalyzed a return to positive market action.
"Based on my understanding of the present state of ether, the Ethereum network and its decentralized structure, current offers and sales of ether are not securities transactions,".
According to Hinman, are not securities.
In remarks made at the summit, Hinman stated that the SEC has no plans to alter the definition of securities to include Bitcoin, defining the official position of the regulatory body on cryptocurrencies - the name of a token is not important, but the manner in which it is sold, what it promises, and how it behaves is.
"Can a digital asset originally sold in a securities offering eventually be sold in something other than a security? How about cases when there's no longer a company [involved]? I believe in those cases answer is a qualified yes."
According to the SEC official, the economic reality of any given token is more important than how it is labeled - in Hinman's words, "Form is disregarded for substance." During the extensive session on cryptocurrencies, Hinman elaborated on the SEC's position on Bitcoin - which, like Ethereum, will not be considered to be a security by the SEC due to its decentralized nature.
"Over time, there may be other sufficiently decentralized networks and systems where regulating the tokens or coins that function on them as securities may not be required."
The SEC appears to be adopting a nuanced stance on the controversial topic of initial coin offerings.
The cryptocurrency market has bounced back from a recent bear run in dramatic fashion in light of the announcement, with global cryptocurrency market capitalization recapturing over $4 billion in just one hour.
Crypto Market Bounces Back: SEC Declares Bitcoin and Ethereum are Not Securities
Publicado en Jun 14, 2018
by Cryptoslate | Publicado en Coinage
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