If ETH and XRP are securities watch out

jamesashmore1964

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Quote from: jacaf01 on May 02, 2018, 08:06:23 AM

Don't let us deceived ourselves Ethereum and Ripple are both securities, they have nowhere to hide, this is one of the price you pay to be a leader in a space, when Ethereum did their ICOs the legal issue was not clear then but now some light has come out on this and I personally think they are securities, you can not eat your cake and have it

In my opinion the SEC will crash and burn this market and let it grow according to their rules.
Their rules will be the Howey Test.
if I am right people are going to be burnt big time.

jacaf01

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The revolutionary trading ecosystem

Don't let us deceived ourselves Ethereum and Ripple are both securities, they have nowhere to hide, this is one of the price you pay to be a leader in a space, when Ethereum did their ICOs the legal issue was not clear then but now some light has come out on this and I personally think they are securities, you can not eat your cake and have it

jamesashmore1964

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JUST READ THIS:

The argument that Ethereum is by now sufficiently horizontally established to disqualify it from a securities classification has been mentioned by influential former U.S. government regulator Gary Gensler. He considers the fact that the coin is now mined may help ETH’s case. Gensler did, however, reiterate the possibility that the presale itself was “noncompliant.”

ETH’s trading price took as much as a 6% hit yesterday, but it has since recovered, trading around $680 to press time.

This means that ETH is probably safe but I dont think Ripple is.
ETH will probably be fined a lot of money.

jamesashmore1964

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Quote from: jamesashmore1964 on May 02, 2018, 07:22:49 AM

Until this matter is clarified this market will go sideways.
The SEC are not gunning for BTC

In addition, these are uncertain times in the development of the cryptocurrency markets

jamesashmore1964

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Activity: 336

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Until this matter is clarified this market will go sideways.
The SEC are not gunning for BTC

jamesashmore1964

jr. member

Activity: 336

Merit: 3

Lets face it: Coinbase do not want to list XRP

This guy said "COULD PROBABLY BE CLASSIFIED AS SECURITIES"

Gary Gensler, the former chairman of the Commodity Futures Trading Commission, said that government officials should take a closer look at the largest coins by market capitalization, not just at tokens sold in ICOs. Ethereum’s Ether and Ripple’s XRP could probably be classified as securities, Gensler said.

ITS A BIG GAMBLE TO HOLD THESE COINS

Gensler probably wants to make a name for himself: Here is his opportunity.

Call it FUD BUT if they are defined as securities this market will crash and burn big time.

In my opinion the SEC WILL follow the "Howey Test," which comes from a 1946 U.S. Supreme Court case. The ruling says a security involves the investment of money in a common enterprise, in which the investor expects profits primarily from others' efforts.

ETH AND XRP will be removed from exchanges in the USA if they are deemed as securities. So will other coins that do not fit into the Howey Test.

The Howey Test makes it easy to regulate this space and is a quick fix solution and it will most probably be used.

http://fortune.com/2018/05/01/sec-and-cryptocurrency-regulations/

https://www.investopedia.com/news/ethereum-price-drops-news-sec-scrutiny/

Topic: If ETH and XRP are securities watch out (Read 98 times)