The US-SEC has again clarified its position on Ethereum and Bitcoin and states that both crypto currencies are not securities. The announcement by William Hinman, Head of the SEC Corporate Finance Division, has addressed one of the most pressing issues in the crypto market and brought about a return to positive market developments.
Hinman’s official statement made at the Yahoo Finance All Market Summit expressly exempts Bitcoin and Ethereum from definition as securities:
“In my understanding of the current state of the ether, the Ethereum network and its decentralized structure, current offers and sales of ether are not securities transactions.”
US regulators unveil Bitcoin Profit
Some crypto currencies are not securities, according to Hinman. In his speech at the Summit, Hinman stated that the SEC has no plans to change the definition of securities. There will therefore be no change in the law to define the new asset class. The name onlinebetrug of a token Bitcoin Profit is not important, but the way it is sold, what it promises and how it behaves, Hinman said.
In the SEC official’s view, the economic reality of each token is more important than its identification. During the extensive session on crypto currencies, Hinman discussed the SEC’s position on Bitcoin – which, like Ethereum, is not considered a security by the SEC due to its decentralized nature.
Bitcoin and Ethereum no securities
The SEC official unfortunately did not go into detail about the various old coins, but expressed that further coins would be exempt from classification and regulation as securities. Hinman suggested that some digital assets could potentially be structured as a consumer good and not as a security, especially if the support is explicitly intended for personal use and not as an investment. Above all, this provides certainty for many developers who focus on projects that create a blockchain platform with real use cases that the respective tokens are not generally classified as securities. Nevertheless, the issue of fraud in the ICO ecosystem is one of the SEC’s main concerns.