Categories: Ethereum

U.S. SEC Chairman agrees with staff analysis that Ethereum is not a security

Click here to view original web page at www.tokenpost.com
Photo by Andrew Harrer—Bloomberg/Getty Images

The U.S. Securities and Exchange Commission’s chairman Jay Clayton has agreed to the analysis by the SEC staff that found that Ethereum is not a security.

In a speech last year, William Hinman, Director of the Division of Corporate Finance at the SEC, had said:

“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.”

Be your own voice. Start your own newspaper now.

In an online post dated March 12, Jerry Brito, Executive Director of Coin Center, said that they worked with Rep. Ted Budd to send a letter to Chairman Clayton asking whether he agreed with Hinman’s approach.

In response to the letter, Clayton has now said, “I agree that the analysis of whether a digital asset is offered or sold as a security is not static and does not strictly inhere to the instrument.”

Without explicitly calling out Ethereum in his response, Clayton said that although a digital asset may be offered and sold initially as a security as per the definition of an investment contract, it might change over time. He explained:

“A digital asset may be offered and sold initially as a security because it meets the definition of an investment contract, but that designation may change over time if the digital asset later is offered and sold in such a way that it will no longer meet that definition.

“I agree with Director Hinman's explanation of how a digital asset transaction may no longer represent an investment contract if, for example, purchasers would no longer reasonably expect a person or group to carry out the essential managerial or entrepreneurial efforts. Under those circumstances, the digital asset may not represent an investment contract under the Howey framework.”

The crypto industry has welcomed Clayton’s statement. Lars Seier Christensen, Chairman of Concordium, the world’s first ID/KYC-ready business blockchain network, said:

"The SEC clarification of the status of Ethereum is a good first step towards overall clarity on future blockchain and cryptocurrency regulation.

"I think cryptocurrency exchanges are glad to see regulatory guidance in this case and in others as well. Understanding how to deal with a tradeable asset and the rules you need to adhere to makes it easier for the exchange to provide a valuable service to their customers."

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Bitcoin {BTC} founder Satoshi Nakamoto will allegedly disclose his identity; Charlie Lee rejoices with regards to Bakkt launch

Satoshi Nakamoto was the man behind Bitcoin. His personal identity has remained secret for over a decade. Some believe that… Read More

2 hours ago

Crypto Community Reacts to Bakkt But Not all Are Bullish

The news that regulatory approval has finally been granted to Bakkt has generally been perceived as bullish for the industry.… Read More

2 hours ago

Bitcoin is not behaving like a safe-haven asset, says Ikigai founder Travis Kling

Kling doubts whether Bitcoin is ready to assume safe-haven responsibilities like its peers such as gold. Kling did note Bitcoin’s… Read More

2 hours ago

Istanbul Hard Fork: Ethereum Devs Agree to Make Six Different Code Changes

The developers of Ethereum (ETH), the world’s largest platform for building decentralized applications (dApps), have finalized six different codebase modifications… Read More

2 hours ago

Blockchain Voting System in Moscow Municipal Elections Vulnerable to Hacking: Research Report

A recent research report by a French cryptographer demonstrates that a blockchain voting framework utilized in Moscow’s municipal elections is… Read More

2 hours ago

What Would It Take To Build A World Without Globalists?

Authored by Brandon Smith via Alt-Market.com, You can bet that whenever you find people analyzing the root of a problem… Read More

8 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More