Topic: Big Day For ETH, Will the SEC Consider it a Security? With updates after news (Read 35 times)
May 07, 2018, 10:58:09 PM
@snapee11. Agreed. Also the funny part is these discussions with the American government are really an opportunity for the cryptospace representatives to shill blockchain hehehe.
May 07, 2018, 10:42:34 PM
US will only consider it if there's a favorable exchange for them. US won't do anything good for nothing.
May 07, 2018, 10:37:24 PM
It appears that the day the SEC was to decide on how to categorize ETH was FUD made by the media to get more hits on their sites. There were discussions made but it was not to make a decision on the future of ETH's legality. It was to discuss about the different technological developments in the cryptospace.
Markets trembled this weekend amid rumors of a regulatory crackdown on Ethereum, which may, or may not, be labeled an unregistered security. After two days of tense sell-offs and plummeting prices, investors woke up on Monday morning to learn that the US government had decided….nothing. The ticking time bomb was a dud.
There were no signs of a ruling or a hearing from either the SEC or CFTC on Monday morning, nor were any meetings planned relating to cryptocurrencies at either agency. Reports of an imminent crackdown were traced back to one line in the Wall Street Journal a week earlier, which reported that senior figures in the two agencies might meet to “discuss the matter.”
Based on Paul Vigna’s off-the-cuff comment in a WSJ article, various crypto media outlets began reporting that decisions were imminent, Ethereum was on the block, Ripple might be too! The FUD spread. Crypto ‘insiders’ were fed Telegram tips suggesting that a ‘friend of a friend’ was in a meeting with the Feds, and knew that Ethereum was going to be declared a security. The FUD spread further.
Read the full article https://cryptobriefing.com/ethereum-plummets-nothing-happens/
Markets trembled this weekend amid rumors of a regulatory crackdown on Ethereum, which may, or may not, be labeled an unregistered security. After two days of tense sell-offs and plummeting prices, investors woke up on Monday morning to learn that the US government had decided….nothing. The ticking time bomb was a dud.
There were no signs of a ruling or a hearing from either the SEC or CFTC on Monday morning, nor were any meetings planned relating to cryptocurrencies at either agency. Reports of an imminent crackdown were traced back to one line in the Wall Street Journal a week earlier, which reported that senior figures in the two agencies might meet to “discuss the matter.”
Based on Paul Vigna’s off-the-cuff comment in a WSJ article, various crypto media outlets began reporting that decisions were imminent, Ethereum was on the block, Ripple might be too! The FUD spread. Crypto ‘insiders’ were fed Telegram tips suggesting that a ‘friend of a friend’ was in a meeting with the Feds, and knew that Ethereum was going to be declared a security. The FUD spread further.
Read the full article https://cryptobriefing.com/ethereum-plummets-nothing-happens/
May 06, 2018, 10:06:14 PM
I hope the USA's SEC knows what would possibly happen if they categorize ETH as a security. It would scare away the innovators from their country and continue on with their projects in other welcoming countries like Switzerland.
I have been a critic of Ethereum because I disagree in some of the ways the Ethereum Foundation handled the DAO and the promises made by their development team that may not happen, like the switch to POS. But it does not mean I want to see them go down.
In any case, I wish Ethereum would be give safe harbor. They should be given space to innovate I reckon.
“When you depart from the bitcoin or the ethereum, and you get into the tokens, the hallmarks become pretty clear.”
So said Jay Clayton, Chairman of the Securities and Exchanges Commission (SEC) in November. Then, only a few weeks ago during a hearing, he said:
“It’s a complicated area. Because, as you said, there are different types of cryptoassets. Let me try and divide them into two areas.
A pure medium of exchange, the one that’s most often cited, is Bitcoin. As a replacement for currency, that has been determined by most people to not be a security.
Then there are tokens, which are used to finance projects. I’ve been on the record saying there are very few, there’s none that I’ve seen, tokens that aren’t securities.”
Whether tokens are securities or not, has not been decided by any court. SEC’s interpretation that they are, is just an interpretation by some lawyers. Other lawyers have different interpretations.
In the context of a criminal case, one such lawyer has put forth some strong reasons as to why some tokens are not a security.
It is a criminal case, and the judge sits in the FISCA court, and it is being heard in Wall Street’s New York, so it wouldn’t surprise us if the judge decides the token is a security.
However, as this is a new area, and the judge would in effect be making a new law by interpreting old law, it would probably, or at least hopefully, be appealed whichever way it goes up to the Supreme Court so that the most senior judges of the land give their verdict on this very important matter.
With that case in the background, cynicnodes would be faulted for thinking SEC might be playing games by recent suggestions they are to discuss tomorrow whether eth is a security.
They could be trying to “scare” us by bringing ethereum to the table and potential classification as security so that we “accept” that actual tokens are a security.
Although it may well be their discussion is following a request by a number of Silicon Valley based Venture Capitalists for “safe harbor” for tokens that then have a running network or functionality.
Generally speaking, there is no reason to accept tokens are a security without a Supreme Court judgment or by a new law from Congress.
Read the full article https://www.trustnodes.com/2018/05/06/big-day-eth-secs-chairman-already-stated-ethereum-not-security
I have been a critic of Ethereum because I disagree in some of the ways the Ethereum Foundation handled the DAO and the promises made by their development team that may not happen, like the switch to POS. But it does not mean I want to see them go down.
In any case, I wish Ethereum would be give safe harbor. They should be given space to innovate I reckon.
“When you depart from the bitcoin or the ethereum, and you get into the tokens, the hallmarks become pretty clear.”
So said Jay Clayton, Chairman of the Securities and Exchanges Commission (SEC) in November. Then, only a few weeks ago during a hearing, he said:
“It’s a complicated area. Because, as you said, there are different types of cryptoassets. Let me try and divide them into two areas.
A pure medium of exchange, the one that’s most often cited, is Bitcoin. As a replacement for currency, that has been determined by most people to not be a security.
Then there are tokens, which are used to finance projects. I’ve been on the record saying there are very few, there’s none that I’ve seen, tokens that aren’t securities.”
Whether tokens are securities or not, has not been decided by any court. SEC’s interpretation that they are, is just an interpretation by some lawyers. Other lawyers have different interpretations.
In the context of a criminal case, one such lawyer has put forth some strong reasons as to why some tokens are not a security.
It is a criminal case, and the judge sits in the FISCA court, and it is being heard in Wall Street’s New York, so it wouldn’t surprise us if the judge decides the token is a security.
However, as this is a new area, and the judge would in effect be making a new law by interpreting old law, it would probably, or at least hopefully, be appealed whichever way it goes up to the Supreme Court so that the most senior judges of the land give their verdict on this very important matter.
With that case in the background, cynicnodes would be faulted for thinking SEC might be playing games by recent suggestions they are to discuss tomorrow whether eth is a security.
They could be trying to “scare” us by bringing ethereum to the table and potential classification as security so that we “accept” that actual tokens are a security.
Although it may well be their discussion is following a request by a number of Silicon Valley based Venture Capitalists for “safe harbor” for tokens that then have a running network or functionality.
Generally speaking, there is no reason to accept tokens are a security without a Supreme Court judgment or by a new law from Congress.
Read the full article https://www.trustnodes.com/2018/05/06/big-day-eth-secs-chairman-already-stated-ethereum-not-security
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