Will the SEC Rule Ethereum is a Security? Time to Panic?

techwizardry (65) · 7 years ago

Wall St. is already invested into the crypto space and ETH, so I'm sure the right palms have already been greased at the SEC.

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cryptosharon (69) · 7 years ago

Aaaaah, such a nice landscape! :D I want to do some tourism there.

I think you said before that Ethereum will be switching to PoS (is that true?). I've also heard that Steem is going back to PoW soon. Is lobbying a thing in England too?

I think that overall all the movements will tend to favour cryptocurrencies because of the power of the big investors. I'm always eager to see legal activity regarding cryptocurrencies because that can only give them validity. All of these regulations serve as "backing", like the gold standard, and help to convince people that cryptocurrencies can only grow from here.

Thanks for the outdoors video! :D I want to travel a bit. We'll see later how it all turns out to go.

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louisthomas (75) · 7 years ago

Yes to both questions! The eventual switch to POS adds another layer of complexity to this issue. It's probably fair to say that POW resembles securities to a lesser degree than POS. And yup! Lobbying is a big problem on the national level and within the EU too. Hopefully we can benefit from this kind of lobbying for a change though :)

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markjackson1989 (53) · 7 years ago

eth is not a security

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3 votes

newageinv (70) · 7 years ago

Regarding the SEC decision, I think they will not provide a clear decision as it has major implications for regulation. Thus, they will probably delay their ultimate decision by saying that it is not a security but needs to be regulated thus leaving an overhang as the framework for regulation is created. Given that it is the primary vehicle for capital raises, they will want to keep it under its jurisdiction vs an CFTC which have more flexibile requirements.

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johnz14 (65) · 7 years ago

Let's hope that news will be good, as most of my holdings are in ETH.

I know that you're a big Ethereum fan, but would you suggest moving a little bit of money from Ethereum to something else?

My opinion is that it has great future, but I don't know if it has ability to surpass Bitcoin in the near future.

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4 votes

lunaticpandora (69) · 7 years ago

This is going to be a really hard case to crack, since as you say on the video, the 2 sides offer sound arguments... If good news comes out of this, then Eth will continue on the amazing rally it has been in the past few weeks but if bad news comes out of this we could see a price going back to 500$ or even less... crossing fingers for a positive outcome since this affects us all.

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alejandromata (56) · 7 years ago (edited)

This will be a very important decision, for now ETH is growing quite a lot. Although the SEC can say it is not a security, ETH platform has shown us that it has a good use with ERC20 tokens and his decentralization.

Sometimes governments tend to censor or make illegal what takes away control over their citizens or over what they can not collect taxes. I think the price will go down a bit for the fud.

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milano1113 (58) · 7 years ago (edited)

Two decisions could happen. One with downside where all crypto could end up under selling pressure or upside where institutional companies could finaly get on crypto board. Let’s hope it’s the good news!

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mindtrap (74) · 7 years ago

I will agree with you @louisthomas
All those 3 fasctorsyoumentioned plus the fact that ...yeah it was a different thing when it was as an ICO and a different thing fromthe end of the ICO proccess till today.
Eventually they (governments) would become a bit more strict.I guess it is that moment?ILet's wait a few more hours to find out.
Lots of people have heavily invested in ETH and willbe anxious...

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bhoomikaprht (38) · 7 years ago

It is really bad news if the market gets crashed because if SEC it might ruin the motive.
Eth is doing good but I don't know what is going to happen. I have been hearing about the discussion, but let's jut hope everything good happens.

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olumideolowoyeye (65) · 7 years ago

I can’t wait to hear your opinion on this , I’m loading the video just now Network sucks. I hope it goes well when they announce, I’ve got some ethereum

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4 votes

hashcash (63) · 7 years ago

The points you summarized in first two minutes serve as a perfect explanation for newbies like me. Although I missed a few points after that............ Thanks for the explanation.
Man SEC has all of in bit of panic. After the market has been showing signs of Bullish attitude.

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mistakili (69) · 7 years ago

I have heard some rumours about the SEC is looking to apply securities laws to everything from cryptocurrency ... for a handful of major cryptocurrencies such as bitcoin and ethereum

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3 votes

frankvvv (65) · 7 years ago

Let's hope that won't happen.

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mistakili (69) · 7 years ago

I really doubt it

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tomilolafadipe (62) · 7 years ago (edited)

They are meeting on Monday to discuss. There may actually be an official ruling.

Well first off, in my opinion, if Ethereum is labeled a security, then there would be a massive market crash in the crypto world IMO.

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3 votes

reidlist (56) · 7 years ago

It would certainly make things more complicated.

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faridk (44) · 7 years ago

In my view, and under the current laws, it is a security as the major use case is ERC20 tokens. However whichever way the SEC rules the only people who will be really happy are the lawyers.What is really required is for the SEC to define a new asset class for crypto.

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louisthomas (75) · 7 years ago

Your call my man! I'm still holding onto all of my ETH with no intention to sell 🙂

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faridk (44) · 7 years ago

I am not saying ETH is a bad coin or that people holding ETH should necessary sell but what I am saying is that under current regulation I think ETH looks more like a security than a utility.
This is all a bit farcical as crypto does not fit into any of the classical asset class models. Consequently if the SEC say ETH is indeed a security that punches a big hole in the whole ERC20 eco-system due to the increased regulation and scrutiny that will result. That is why IMHO the SEC should adopt a "Wyoming" type law that clearly defines exactly what a utility token is instead of using outdated regulations, that are not fit for purpose, to classify crypto.

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alizafatima99 (44) · 7 years ago

Eth is doing good but I don't know what is going to happen. I have been hearing about the discussion, but let's jut hope everything good happens. @louisthomas

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travellingwomen (51) · 7 years ago

The world’s second-most popular cryptocurrency by market capitalization, ethereum, is facing the regulatory heat.

This morning, the valuation of ethereum fell by around 6% as The Wall Street Journal reported that the cryptocurrency is under regulatory scrutiny over “whether rules designed for stocks should apply to virtual currencies such as ether.”

Additionally, the creation of the leading cryptocurrency itself is being questioned as "probably an illegal securities sale," as per WSJ, which quotes people familiar with the matter. The Ethereum Foundation conducted the first ethereum sale in July 2014 and successfully raised more than 31,000 bitcoins by selling 60 million ether tokens, then valued at around $18.3 million. As this activity is being looked up as a speculative launch that could lead to a rise in asset value of ethereum, it is being considered as a security offering

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obest (59) · 7 years ago

the movements will tend to favour cryptocurrencies because of the power of the big investors. I'm always eager to see legal activity regarding cryptocurrencies because that can only give them validity. All of these regulations serve as "backing", like the gold standard, and help to convince people that cryptocurrencies can only grow

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asim1234 (45) · 7 years ago

The second largest cryptocurrency by market cap lost over 6% on Tuesday due to the fact that governments bodies and other agencies are analysing whether digital assets should follow the same rules as regular stocks or not.

Regulators are investigating coin after coin to see which cryptocurrencies can be influenced by their creators or founders. The SEC and the US Commodity Futures Trading Commission (CFTC), will be discussing these issues on Monday.

As reported by The Wall Street Journal, Ethereum is under regulatory scrutiny. Additionally, the creation of this virtual currency is being questioned as ‘an illegal securities sale.’ For the regulators, the managers of Ethereum may have an influence on the price of the cryptocurrency, and this is being investigated.

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smithandy (42) · 7 years ago

Etherium is now converted into an important cryptocurrency. I think if this currency is given extra security, then it would be very good because now a community members are converted into etherium currency, we should use and acquire accurate knowledge about this currency.

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