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   426

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.

Prime Trust to Launch Custody Service for Crypto

CEO claimed his company will be the first to offer custody for any ERC-20 tokens
15 August 2018   182

Prime Trust announced the launch of the cryptocurrency custody service. This is reported by the Coindesk.

It became known that as early as the middle of July, the bitcoin storage service became available to customers, and next week support for Ethereum and ERC-20 tokens will be added.

In cryptographic storages, the access key to the wallet is stored either on a secure device not connected to the network or on paper in a safe.

Recently, information has appeared that several financial market mastodons, including Goldman Sachs, Northern Trust and Intercontinental Exchange, plan to provide custodian services for cryptocurrencies. However, according to Prime Trust head Scott Purcell, they were able to get ahead of the above-mentioned organizations.

They are trillion-dollar Fortune 100 entities, and they are just not going to move that fast. "We had had an engineering breakthrough which now enables us to easily cold-storage any ERC-20 token (along with BTC and ETH, of course).

Scott Purcell

CEO, Price Trust

Also, Scott notes that Prime Trust will be the first company to offer any ERC-20 tokens storage services.