Director of the division of corporate Finance securities and exchange Commission (SEC) USA, William, Hinman (Hinman William) confirmed that transactions with cryptocurrency Ethereum are not regulated by Federal securities laws.
The main reason why the Agency made this decision, was the absence of any person responsible for Ethereum, that is the decentralized nature of the cryptocurrency management. About Hinman spoke at the conference on cryptocurrency organized Yahoo Finance in San Francisco.
“According to my understanding of the Ethereum platform and its decentralized nature, the current proposals for the sale of ether can not be called by transactions with securities,” said Hinman, before the conference.
Before him their views on the nature of the exchange of air is exchanged, and other officials, discussing mostly the legislative regulation of the process. The representative of the SEC added that analysis of something in order to understand whether it security is not static and cannot be strictly linked to the tool.
In addition to Ethereum, Hinman spoke about the utility of the tokens that are used to purchase any of the services on the service, also preferring not to call them securities. Though utility-tokens are digital assets, they can only function as a medium of exchange for the decentralized platforms, and even if they were sold as investment strategies, they still cannot be called securities. The representative SEC acknowledged that customer expectations can define a classification of security tokens, or a token investment. If the buyer has reasonable grounds to believe that it will benefit from the actions of seller, then the token can be probably called conditional security.
Recall that a week earlier, the SEC Chairman Jay Clayton (Jay Clayton) stated that bitcoin cannot be attributed to the number of securities, as it essentially replaces the national currency. He Ethereum co-founder Joseph Lubin (Lubin Joseph) also refuses to classify the cryptocurrency in this way.
Hinman, in conclusion, confirmed the willingness of the SEC to work with cryptocurrency projects and their legal advisers to determine whether they need to register with the regulatory authorities or not.
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