The cryptocurrency space vividly discusses the new comments of US regulators on whether the token ether (ETH) of the Ethereum network is a security and their impact on the industry.
After receiving a response from Jay Clayton, chairman of the US Securities and Exchange Commission (SEC) at the request of a non-profit organization in New York, the Coin Center, the company again launched a debate on cryptocurrencies and obligations regarding securities. The Coin Center asked Clayton for clarification in September 2018, three months after SEC’s corporate finance director, William Hinman, suggested that he does not consider Ethereum’s tokens as securities.
In his position, Hinman relied on the Howey test, a method for determining compliance of securities, and confirmed that private research showed that the broadcast could not pass this test. Now Clayton confirmed Hinman’s original vision.
I agree with Director Hinman’s explanation that a digital asset transaction can no longer represent an investment contract if, for example, buyers do not expect a person or group to complete basic management or business efforts. In these circumstances, the digital asset may not represent an investment agreement using the Howey method,
- response to a request from the Coin Center on March 7.
The reaction of space to Clayton’s comment was explosive, but experts say that although the content of the letter is worth noting, it should not be used as a de facto resolution of the question of whether Ethereum is a security.
Has Clayton approved the SAFT structure? Not. He also did not say that Ethereum is not a security. However, words have meaning as well as diction. It’s hard to ignore these comments and everything they say
- said cryptocurrency lawyer Marc Santori (Marco Santori) in the comments in social media.
Belonging to securities continues to cause unrest for US regulators at the local and national levels. Over the past year, numerous actions have taken place, and efforts aimed at curbing the unauthorized sale of tokens, which are considered securities.
Meanwhile, Jerry Brito, Coin Center Chief Executive Officer, thanked Clayton and Hinman for their “thoughtful approach” to this topic.
