Ethereum Isn't a Security, SEC Says

This is said by William Hinman, Director of Corporate Finance at SEC, at the All Market Summit: Crypto in San Francisco
15 June 2018   1602

The Securities and Exchange Commission of USA (SEC) does not plan to classify Ethereum and bitcoin as securities. This was stated by the director for corporate finance commission William Hinman at the All Market Summit: Crypto in San Francisco, Yahoo Finance reported.

According to the official, if Ethereum and bitcoin were recognized as securities, then, like shares of companies, this would require their registration with the SEC. Nevertheless, Hinmen said, these properties are more characteristic of the product, which, apparently, sends Ethereum to the US Futures Trading Commission (CFTC).

If a cryptocurrency network is sufficiently decentralized and purchasers no longer have expectation of managerial stewardship from a third party, a coin is not a security. Similarly, labeling an investment opportunity as a “coin” or a “token” does not make something not a security.

William Hinman

Director of Corporate Finance, SEC

Earlier head of the SEC Jay Clayton said that bitcoin is not a security.

ETH May Become Security After POS Migration,- CFTC

At the moment, according to the head of CFTC, Ethereum is more likely an exchange commodity rather than a security, but it may change 
14 November 2019   142

The head of the Commission for derivatives trading (CFTC) Heath Tarbert expressed the opinion that cryptocurrencies involved in the cryptocurrency using the Proof-of-Stake algorithm can be considered as securities. It is reported by Decrypt.

Earlier, the head of the CFTC said that in its current form, Ethereum is more likely an exchange commodity rather than a security. However, I am sure Tarbert, over time, the status of an asset may change. For example, a security can become a commodity and vice versa.

We are thinking carefully about it.

Heath Tarbert

Chairman, U.S. Commodity Futures Trading Commission

The popular Proof-of-Stake (PoS) algorithm involves the use of “stake” as a resource that determines which particular node receives the right to mine the next block. Higher chances to generate the next block are received by the node with greater balance.

Recently, staking services that promise customers a return on investment in PoS assets have become popular. According to some experts, these services could potentially violate the provisions of the Howie test, such as having a joint venture, as well as an investment contract involving two parties.

At the same time, Tarbert spoke out against an aggressive approach to regulating cryptocurrencies, which could suppress innovation and hinder the strengthening of the US position in the innovation sphere.

Clarity and consistency is the first step to leadership.

Heath Tarbert

Chairman, U.S. Commodity Futures Trading Commission

Earlier, Heath Tarbert expressed the view that regulated futures based on Ethereum will soon appear on the market.