Cryptocurrency industry sources continue to debate the impact of fresh statements from US regulators over whether the Ethereum network’s ether (ETH) token is a security.
SEC Presents Concerted View On Ethereum
After receiving a response to an enquiry from Jay Clayton, chairman of the US Securities and Exchange Commission (SEC), New York-based nonprofit Coin Center reignited a festering debate about cryptocurrency and securities obligations. Coin Center had asked Clayton for clarification in September 2018, three months after the SEC’s Director of Corporate Finance, William Hinman, issued comments suggesting he did not think ether was a security.
Hilman based his stance on the Howey Test, a method for determining securities compliance, and confirmed private research suggested Ether would fail this test. Now, Clayton appeared to confirm Hinman’s original claims.
“I agree with Director Hinman’s explanation of how a digital asset transaction may no longer represent an investment contract if, for example, purchasers…