Hopes of a bear market turning into a bull one has become much higher with the Securities and Exchange finally going cryptocurrency’s way by declaring Bitcoin and Ether are not securities.
The bounce back in the two most prominent cryptocurrencies, Bitcoin and Ethereum, is being seen in the market. With the last week being an upsetting one, which saw some downswings this week seems to be much better.
The statement made by the director of corporate finance in the SEC, William Hinman was informal but clearly outlined what was in the SEC’s mind. He made the statement at Yahoo Finance’s All Market summit: Crypto in San Francisco.
“And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions. And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value.” Hinman said in the speech at the summit.
He even went on to clear the air that Bitcoin would not be classified as a security either. In fact now since it’s not classified as securities, it is in the same field as gold, silver or oil according to the SEC’s classifications.
The speech created waves immediately with Ether spiking by 12% from $464 to $524.
Hinman however clearly stated that the other cryptocurrencies, tokens and ICO’s will be monitored and clearly stated if they are individually securities or not.
Hinman noted the interest in Blockchain technology, but that crime using the future technology is being prevalent.
“There is excitement and a great deal of speculative interest around this new technology. Unfortunately, there also are cases of fraud,” Hinman clarified.
With confusion in America about what the SEC thinks, this informal statement by Hinman will help America cope with the other leading markets regarding the blockchain and cryptocurrency industry.
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