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.
Director of Corporate Finance, SEC
Earlier head of the SEC Jay Clayton said that bitcoin is not a security.