The United States Securities and Exchange Commission (SEC) spoke at the Yahoo Finance All Markets Summit and said that Bitcoin and Ethereum could not be classed as securities because they don’t benefit a single entity.
Bitcoin and Ethereum are not securities
This was not so hard to figure out because Bitcoin and Ethereum are not associated with the notion of a security. On the other hand, Ripple’s XRP is SEC’s primary target for the moment because the debate around the crypto continues to split the members of the crypto community.
William Hinman, the Director of the Division of Corporation Finance at the SEC, said via CNN:
“Putting aside the fundraising that accompanied the creation of Ether, 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. And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value.”
Even if this kind of announcement was not expected it does provide a relief to crypto investors within the U.S.
Cryptos’ value may raise
A Bitcoin or Ethereum security association didn’t seem likely, but it’s still a nice move from the part of SEC to prove for the public that they are not.
“The speech of Hinman was specifically noteworthy and important because it was the first case in which an official from the SEC provide clarity on the nature of Bitcoin and Ethereum in a public statement. Some analysts have stated that the SEC likely offered clarity on the two cryptocurrencies to prevent the cryptocurrency industry and blockchain sector of the US from falling behind other leading markets.”
It’s possible that the SEC will speak out about Ripple XRP next because the crypto has substantial implications in the matter.
Anyway, the crypto markets seem to be reacting well to the news, and we hope to see some raises in the cryptos’ value.