Wall Street Journal (WSJ) reports that one of the senior officials of the Commission on securities and exchange Commission (SEC) stated that Ethereum (ETH) will not be regulated as securities.
Director of SEC corporate Finance William Hinman said at the summit Yahoo Finance All Market Summit: Crypto in San Francisco:
Based on my understanding of the current state of ether, Ethereum and its decentralized structure, current proposals for the purchase and sale of Ethereum cannot be classified as transactions with securities.
Approval of Hinman about what Ethereum is decentralized enough to not classify it as securities, says that the SEC is finally making progress with the understanding of this crypto-currencies and not are strictly regulated.
In may, the WSJ published an article stating that Ethereum is in a dangerous “gray area” according to US regulators.
Recall that in 2014, Ethereum held one of the first ICO. The collected funds were then used to develop the Ethereum platform, have raised concerns that the tokens will be classified as securities, as investors bought tokens expected increase in the cost of this asset, hoping to profit based on the “efforts of others”.
Regulators also analyzed the influence of Fund Ethereum on the value and distribution of the asset, as this could also affect his status.
During this public dispute co-founder of Ethereum’s Joseph Lubin changed his position and stated that the Ethereum investors “share share in the common enterprise” and that the profitability of their investment depends on the success of the platform.
In April, Gary Gensler, who previously headed the regulatory body of the United States, said that Ethereum will in all probability be classified as securities.
In response, the head of the Fund Ethereum Aya Miyaguchi said that the Fund was “in no way controls the release of Ethereum, and the Fund owns less than 1% of all funds, which is much less than many other ecosystem participants.
Notably, Gensler, and Hinman, really considered the fact that ETH is done using hashing as a strong argument in favour of not classifying Ethereum as securities.
Last week, SEC Chairman J. Clayton stated that, in his opinion, bitcoin (BTC) is not a security, as he intended to replace Fiat currency.