SEC: Ethereum is too 'decentralized' to be considered a security

17 June, 2018, 12:55 | Author: Brooke Harris
  • Screen Shot 2018 06 14

Hinman in his speech mentioned the agency would not change its rules concerning digital assets, but though Ethereum had fallen under the category "Securities", but there has been a general agreement that the token, alongside the bitcoin cryptocurrency is similar to commodities, such as gold and crude oil. When a project becomes truly decentralized Hinman believes "in these cases the answer is a qualified "yes". Initial investors in ether have also benefited from a spike in the cryptocurrency's price. He said, "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".

"When we look at how Ether today is operating we see a highly decentralized network, and we don't see a central third party", SEC official William Hinman said at a Yahoo Finance summit on cryptocurrency in San Francisco on Thursday.

What do you think about this surprise declaration by Hinman? Ether, backed by the company Ethereum, spiked almost 9 percent on Hinman's statement, rising to more than $520 on CoinDesk. Soon after the SEC executive made the statements, cryptocurrency markets saw some gains as BTC rose $350 immediately after the news went public. Addressing the audience comprising crypto enthusiasts and investors, he stated, "We don't see a lot of value in seeing ether as a security". "As with bitcoin, applying the disclosure regime of the federal securities laws to current transactions in ether would seem to add little value".

Mr. Hinman also informed the attendees that other crypto could still be considered securities.

Berger and Finau vault onto leaderboard in third round at US Open
He was serenaded with "Happy Birthday" at almost every green, and even after four consecutive bogeys the fans were supportive. Others called foul. "I would have lobbied for a disqualification", said David Fay, a former executive director of the USGA.

"The SEC's recent comments are a validation of the possibility of non-securities tokens and a big step towards more definitive guidance on how and when individual tokens can be defined as non-securities". It's now widely used in new crypto projects across the globe and some anxious that if the regulator subjected it to securities rules that those efforts would have been disrupted. President of CBOE, the creators of the bitcoin futures contract, Chris Concannon told bloomberg that this decision increases the chances of an ETH contract being signed off by regulators.

"This announcement clears a key stumbling block for tther futures, the case for which we've been considering since we launched the first bitcoin futures in December 2017". The CFTC allowed bitcoin futures to be traded past year on three exchanges. This likely means exchanges like Coinbase will stay skittish about adding XRP for now.

The second reason for the SEC's pronouncement on ether is the current decentralized state of ethereum's network.

Recommended:

  • Argentina vs Iceland : Messi subdued by muscular Icelandic defence

    Argentina vs Iceland : Messi subdued by muscular Icelandic defence

    He denied Messi had too much responsibility, saying it was natural to build a team around such a phenomenally talented player. Sergio Aguero gave the South Americans the lead in the 19th minute with a brilliant finish on the turn from 12 metres.
    Second sheriff's deputy dies after shootings in Kansas City

    Second sheriff's deputy dies after shootings in Kansas City

    Rohrer, 35, was with the Wyandotte County Sheriff's Office for 17 years and King, 44, was a 14-year veteran. Lyon County Undersheriff John Koelsch says inmate transfer situations carry an inherent danger.
    CBS report: Sarah Huckabee Sanders planning to depart the White House

    CBS report: Sarah Huckabee Sanders planning to depart the White House

    "The attorney general said today somehow ... there's a justification for this in the Bible", Mr. They come to the border with nothing and you throw their children in cages.
  • Macedonia 'Name' Deal Faces Bumpy Ride Ahead

    Macedonia 'Name' Deal Faces Bumpy Ride Ahead

    The agreement, under which Macedonia will change its name to Republic of North Macedonia, is expected to be signed this weekend. This would leave the left-wing prime minister dependent on support from political opponents to ratify the deal in parliament.
    The Changing Antarctica Finally Revealed After Decades Of Satellite Monitoring

    The Changing Antarctica Finally Revealed After Decades Of Satellite Monitoring

    The water nibbles at the floating edges of existing ice sheets from below which causes them to melt a lot faster than normal. The findings should dispel any lingering doubts that the continent's ice mass is shrinking, the authors said.
    Afghan govt. extends truce with Taliban

    Afghan govt. extends truce with Taliban

    Many people across the country have urged the government and the Taliban to extend their ceasefires. A video showed a huge crowd of people screaming and whistling as they welcomed the Taliban.
  • Salman Khan: Worst Bollywood actor! Proof is here

    Salman Khan: Worst Bollywood actor! Proof is here

    The film went on to have a smashing Eid , raking in Rs 38.17 crore, taking its total collection so far to Rs 67.31 crore. Salman replaces Saif Ali Khan in the film and fans are coming in hordes to watch the action-thriller flick.
    Apple to close iPhone security loophole used by law enforcement

    Apple to close iPhone security loophole used by law enforcement

    The FBI later obtained a hacking tool that allowed the agency to access the contents of the terrorist's iPhone. Apple said it was working a fix to mitigate the possibility of accessing data from GrayKey or similar tools.
    India seal massive win after wickets tumble

    India seal massive win after wickets tumble

    Hashmatullah Shahidi put the brakes on by striking an unbeaten 36 off 88 deliveries but ran out of partners. But forced to follow on, Afghanistan lowered the record again, to 103 in 39 overs.
  • Dovish Draghi helps lift European stocks to June highs

    Dovish Draghi helps lift European stocks to June highs

    But he injected a note of caution by making the step "subject to incoming data confirming our medium-term inflation outlook". Price growth surged to 1.9 percent in May, with higher oil prices the biggest factor lifting it to the ECB's target.
    Technology saved France against Australia

    Technology saved France against Australia

    Samuel Umtiti was involved in one of the most freakish moments at the World Cup so far in France's match against Australia. Australia had frustrated Les Bleus for almost an hour of their Group C game, with goalscoring opportunities limited.

    8 pedestrians injured by taxi on sidewalk near Red Square

    Russian authorities have promised to host a safe World Cup tournament, which is taking place in 11 cities until 15 July. The accident took place on Ilinka Street, around 200 metres from Red Square and Moscow's famous GUM shopping centre.


Popular

NY attorney general sues President Trump and family
Trump held in lieu of participating in the presidential primary debate in Des Moines, Iowa, on January 28, 2016. Underwood referred her findings to the IRS and the Federal Election Commission for possible further action.

'I Said No to Real Madrid,' Reveals Juventus Boss Massimiliano Allegri
His performance while coaching Portugal club, FC Porto endeared Spain to pick him as their coach in 2016 to replace Vincent Del Bosque.

Canadians back PM's handling of Trump attacks, tariffs: polls
Companies don't want to invest into uncertain climates, and when business investment stalls, so does job creation. For that reason, Katsoras still believes that Trump won't pull the trigger and cancel NAFTA.

Beyonce and Jay-Z release new joint album
Jay-Z and Beyoncé dedicated a song from their "On The Run 2" tour stop in London to the victims of the Grenfell Tower Fire Friday. The project, titled " Everything Is Love ", is widely expected to be a follow-up to Beyoncé's 2016 visual album " Lemonade ".

Corker slams GOP colleagues: 'We might poke the bear!'
I would bet that. "'Gosh, we might poke the bear!' is the language I've been hearing in the hallways", Corker said , his voice rising.

China threatens tariffs on United States lobsters as business booms
In the statement , Trump said those measures would be implemented only if the Chinese strike back at Friday's move. Trump's first announced that the U.S. would impose trade penalties on about $50 billion of Chinese goods in March.

Saudi Football Chief Names 3 Players Facing 'Penalties' After World Cup
Neymar, the world's most expensive player, has recovered from a broken bone in his foot in time for the tournament. Aziz Bouhaddouz of Morocco scored an own goal (95') deep into stoppage time to give Iran the win.

Argentina 1 - 1 Iceland | 16 Jun 2018
The key to the match in the first half was based on their left flank, and we were very slow on the ball. Messi failed to give his team the lead when his 64th-minute penalty was stopped by Hannes Halldorsson.

Britain's Rolls-Royce to cut 4,600 jobs
Rolls-Royce has traditionally operated a large corporate centre with overlapping activities between individual business units. Overall, Rolls has 55,000 employees worldwide, of whom 26,000 are in the United Kingdom , with 15,700 of those in Derby.

Kawhi Leonard wants Spurs to trade him
Of course, any time there's a player that could possibly be on the trading block the Boston Celtics have to get involved. A healthy Leonard is probably also one of the five best players in the National Basketball Association right now.