Regulatory fog persists as SEC heads, doesn't mention Ethereum as commodity, doesn't say bitcoin is the only one
Ethereum and Bitcoin
Modified Date:- Published Date:-Categories: Cryptocurrency
Regulatory fog persists as SEC heads, doesn't mention Ethereum as commodity, doesn't say bitcoin is the only one
Ethereum (ETH) advocates have reacted after United States Securities and Exchange Commission (SEC) Chairman Gary Gensler refrained from labeling the coin as a commodity – and instead Bitcoin (BTC) among the tokens of the SEC heads. BTC) before it became a non-security.
However, he did not refer to bitcoin as a 'sole' commodity, contrary to many reports. Gensler said that “Bitcoin and hundreds of other tokens” are part of a “highly speculative asset class”. He further added that some “crypto financial assets have key security features,” adding that in the case of many tokens, “the investor public is looking forward to a return on their bets”.
ETH enthusiasts are hoping to win converts for their cause when the network eventually undergoes the merge that will make it a proof-of-stake (PoS) protocol. The merge could take place in August, and members of the optimistic community have expressed hope that moving away from more energy-intensive mining protocols could help the coin's reputation.
Under 1930s US law, all assets classified as securities must be registered with the SEC before they can be sold. Assets classified as commodities are instead subject to regulation by the Commodity Futures Trading Commission, which regulates financial products such as derivatives.
On Reddit, a user shared a video of Gensler purportedly speaking about ETH ahead of his appointment as SEC chairman. In the video, Gensler makes reference to the so-called Howe test (used in a landmark 1940s Supreme Court case to determine whether a transaction qualifies as an investment contract).
Ethereum Enthusiasts, Bitcoin, SEC, Crypto Financial Assets, Proof of Stake, Tokens, Gensler