The
US Securities and Exchange Commission has weighed in on whether
Ethereum’s crypto-token, ether, should be regulated like a stock or
bond.
The news: William Hinman, director of the SEC’s division of corporation finance, said in prepared remarks yesterday that “current offers and sales of ether are not securities transactions,” due to Ethereum’s “decentralized structure.”
Why it matters: The comments bring clarity to a discussion that intensified after the New York Times reported recently that the SEC was considering subjecting ether to relatively strict securities regulations. Many in the community feared that would lead to a slowdown in investment and development across the industry.
What about Ripple? At MIT Technology Review’s Business of Blockchain conference in April, Gary Gensler, former head of the US Commodity Futures Trading Commission, said there was a strong case that ether as well as Ripple’s crypto-token, XRP, should be regulated as securities. Notably, Hinman’s statement included no mention of Ripple.
The news: William Hinman, director of the SEC’s division of corporation finance, said in prepared remarks yesterday that “current offers and sales of ether are not securities transactions,” due to Ethereum’s “decentralized structure.”
Why it matters: The comments bring clarity to a discussion that intensified after the New York Times reported recently that the SEC was considering subjecting ether to relatively strict securities regulations. Many in the community feared that would lead to a slowdown in investment and development across the industry.
What about Ripple? At MIT Technology Review’s Business of Blockchain conference in April, Gary Gensler, former head of the US Commodity Futures Trading Commission, said there was a strong case that ether as well as Ripple’s crypto-token, XRP, should be regulated as securities. Notably, Hinman’s statement included no mention of Ripple.
—Mike Orcutt
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