Ether explodes higher after SEC news

Screen Shot 2018 06 14

Screen Shot 2018 06 14

While Ripple has made it clear in the past that XRP tokens aren't securities, many analysts believe that the company's centralized nature and control over the coins could put it under the SEC's jurisdiction. Can they similarly evolve from being a security issue at the time of their ICO to a utility token necessary to conduct transactions within an app or network?

What I believe may be most exciting about distributed ledger technology - that is, the potential to share information, transfer value, and record transactions in a decentralized digital environment.

After news of Hinman's comment broke, the price of ether spiked around $70 to over $520, though by press time it had returned to $494. The question hinges on whether investors are buying tokens with the expectation that they will increase in value based on the efforts of others.

"Central to determining whether a security is being sold is how it is being sold and the reasonable expectations of purchasers", William Hinman, head of the Division of Corporation Finance at the SEC, said in a speech at the Yahoo All Markets Summit: Crypto conference in San Francisco.

This statement sounds like opposition to what the SEC Chair earlier said, which was the interpretation of what the agency's policy states.


BTCManager outlined the SEC's battle to differentiate security tokens and utility tokens under its "Regulation D" framework, as the USA government increasingly moves toward regulation of cryptocurrencies.

The SEC is gearing to clear the confusion surrounding the classification of digital assets including Ripple, Ether and ICOs into securities.

The Kholsa Ventures managing director also said it is hard to pick the best digital currency just now, when it is still unknown which has either a clear use or the best underlying technology. It's now widely used in new crypto projects across the globe and some anxious that if the regulator subjected it to securities rules that those efforts would have been disrupted.

Decentralization, Hinman said, played a big role in how the SEC considered ether.

A top SEC official said Thursday that Bitcoin and Ethereum are not securities, adding that a key point in deciding whether a coin is a security is whether a cryptocurrency network is sufficiently decentralized. The CFTC allowed bitcoin futures to be traded a year ago on three exchanges. This means that ether is necessary for each transaction that occurs within the cryptocurrency's network, regardless of the decentralized app (DApp) in which it occurs. Hinman's remarks on Thursday provide around 13 additional factors about how to tell if a token must be registered as a security, according to David Sirignano, a partner at the firm Morgan Lewis.

Recommended News

  • Scientists warn the rate of melting of glaciers rapidly increased

    Scientists warn the rate of melting of glaciers rapidly increased

    But massive glaciers on West Antarctica slowly gliding seaward hold enough water to push oceans up by 3.5 metres (11 feet). However, scientists are not jumping to conclusions in saying that this trend in East Antarctica will continue.
    Pogba Bags France Winner Vs Australia As Technology Reigns

    Pogba Bags France Winner Vs Australia As Technology Reigns

    It was imperative Australia played with a solid foundation at the back, particularly in the opening exchanges of the game. He said that the VAR had fallen in his team's favour this time, so he would not be criticising it on this occasion.
    England get early breakthrough against Australia

    England get early breakthrough against Australia

    Paine had made a decision to begin a new chapter in the Australian cricket after it was hit hard by the ball-tampering scandal. Paine expects a strong response from England , saying: "I'm sure they'll come back better for what happened in Scotland".
  • Bomber strikes gathering of mostly Taliban members celebrating cease-fire, official says

    Bomber strikes gathering of mostly Taliban members celebrating cease-fire, official says

    According to an Al Jazeera report, at least 19 people, including 10 Taliban fighters were killed in separate attacks till 11 June. The Taliban, wearing traditional headgear and many with sunglasses, entered Kabul through gates in the south and southeast.
    Italy 'will not ratify European Union  free-trade agreement with Canada'

    Italy 'will not ratify European Union free-trade agreement with Canada'

    USA officials had already made clear time was running out to secure a deal the current Congress could vote on. Trudeau sought to focus attention on the G7 summit instead of engaging in a war of words with Trump.
    Denmark beats Peru to gain crucial advantage at World Cup

    Denmark beats Peru to gain crucial advantage at World Cup

    Peru and Denmark are FIFA's 11th- and 12th-ranked teams, respectively, so the contest should be competitive and compelling. That helped the keeper recover and leap to grab the ball as it came down with Peru players nearby looking to pounce.
  • Trump accused of misusing foundation

    Trump accused of misusing foundation

    Foundation attorney Sheri Dillon and a Trump Organization spokeswoman didn't immediately respond to messages seeking comment. Its statement accused the NY attorney general of holding $1.7 million in foundation assets "hostage for political gain".
    Greek parliament debates Tsipras no-confidence motion after Macedonia deal

    Greek parliament debates Tsipras no-confidence motion after Macedonia deal

    Opponents in Macedonia disagreed with any modification to their country's name, seeing it as a threat to their national identity. In Greece, opponents were equally angry.
    Hot And Muggy For Saturday

    Hot And Muggy For Saturday

    Scattered thunderstorm coverage increase Sunday; however, it does not look like every single community gets rain. The Weather Service also cautioned against yard work or watering the lawn during the hottest parts of the day.
  • Race 3 actor Salman Khan greets fans on Eid

    Race 3 actor Salman Khan greets fans on Eid

    Nonetheless, Salman Khan's hardcore fan-base came out in good numbers and that ensured healthy numbers to be registered. Salman Khan's Eid releases, Race 3 has witnessed an upward trend on day 2 by collecting 38.14 Cr at the box office.
    Tiger Woods: I've missed playing the US Open

    Tiger Woods: I've missed playing the US Open

    A lot of times you can hit great putts on poa and they don't go in. "I wouldn't be surprised at all to see him win this week". Open in 1896 and is "one of the most important places in all of golf in the United States", according to Davis.
    Moscow: At least 7 pedestrians injured by taxi near Red Square

    Moscow: At least 7 pedestrians injured by taxi near Red Square

    The accident took place on Ilinka Street, about 200 metres from Red Square and Moscow's famous Gum shopping arcade. The city's mayor, Sergei Sobyanin, earlier said on Twitter that the driver "failed to maintain control".

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.