A working group of high-ranking SEC and CFTC officials is preparing for 7 May, because once again possible regulations of crypto currencies are being discussed. All eyes are on Ethereum, because the crypto currency has gained a lot in the last week. However, Ethereum still faces major hurdles as there is a possibility that the SEC may regard the crypto currency as a security. The market seems at least confident, as the price of ether is rising towards $800.
Ether rises to $800 before SEC and CFTC meeting
A recent WSJ report has shaken the cryptoecosystem with the news that SEC and CFTC officials are about to decide whether Ethereum and Ripple are securities. Ethereum co-founder Joseph Lubin said this week that the team that developed the platform and technology were concerned about this scenario early on.
“WE HAVE SPENT A LOT OF TIME WITH LAWYERS IN THE USA AND OTHER COUNTRIES AND ARE VERY SATISFIED THAT IT IS NOT A SECURITY; IT WAS NEVER A SECURITY.
Ethereum’s Lubin goes one step further by opposing the regulation of Ethereum on the basis of the current regulatory system. In order to www.binarycheck.net be legally considered a security, “Ethereum” must pass the Howey test of 1933, and Ethereum does not.
The Securities and Exchange Commission (SEC) has conducted dozens of investigations into ICOs, which found that the tokens sold to raise capital are securities. This would classify Ethereum as a security, regardless of whether it functions decentrally and without a company.
Legal certainty is an invaluable advantage when it comes to the institutional introduction of the crypto currency. Regardless of whether or not regulators regard crypto currencies as securities, a final official decision may create the much needed confidence to promote scamcontrol the introduction of Bitcoin & Co. worldwide. Of course, we all hope that there will be a reasonable distinction between crypto currencies.
At a hearing of the SEC and the CFTC in February, Giancarlo had proposed to the CFTC that a “non-damaging” registration process for blockchain and crypto currency companies be implemented. We will see what will be presented in the discussion round on 7 May. It seems that at least the community agrees, because Ethereum’s price is literally exploding.