Jay Clayton, the Chairman of the United States Securities and Exchange Commission has confirmed statements made by SEC analysts in 2018 that not all cryptocurrencies are securities. The head of the regulatory agency also highlighted the need for a more nuanced discussion about what constitutes a security in the eyes of the SEC as far as the emerging cryptocurrency landscape. Clayton also praised the Commission’s transparency in dealing with matters relating to the regulatory status of cryptocurrencies in the United States.
Not All Cryptocurrencies are Securities
In a letter dated March 7, 2019, Clayton responded to inquiries earlier made by Rep. Ted Budd, R-N.C., concerning comments made by William Hinman, the head of Corporate Finance at the SEC, in mid-2018. Back in June 2018, Hinman while delivering a speech, declared that Ethereum was not a security.
According to Clayton, the Commission does not consider Ethereum, the second-largest cryptocurrency in the market to be a security. This is despite the fact that Ethereum did…