SEC Official Pushes Back on Claims Ether Is a Security

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Ethereum isn’t a security, states U.S. Securities and Exchange Commission director of corporate fund William Hinman. Talking at the Yahoo. All Market Summit: Crypto event from San Francisco, California Thursday, the official told the audience do not see a great deal of value in handling ether today as security, explaining the fact that there’s no central figure or group accountable for ethereum, and for that reason the assets might not represent an investment contract” . In pre written comments, he explained: Based on my comprehension of the present state of Ether, the Ethereum network and its own structure, present offers and earnings of Ether aren’t securities transactions.

Hinman added that likewise, bitcoin isn’t a security because of the nature of its network. With that being said, Hinman cautioned that the evaluation of whether something is that a security isn’t static and doesn’t strictly inherent to the device, and that even digital assets with usefulness which function only as a way of exchange in a decentralized network might be packaged and marketed as an investment strategy which can be a security” . He also pushed back on nominal sales that claim to be manipulated tokens rather than security tokens, stating Let me highlight an earlier stage: just digital asset marking a usefulness token doesn’t turn the asset into something that’s not a safety” . William Hinman picture via Yahoo! / YouTube. The leader in blockchain news, CoinDesk is a media outlet that tries for the greatest journalistic standards and complies with a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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