SEC's Ruling of Ethereum

Monday, May 7th, may be engrained in the history books due to the outcomes that may result. You see, tomorrow, the Securities and Trade Commission will convene to determine whether Ethereum (ETH) is a security. As the situation itself is complex, demanding tremendous thought, we imagine a standstill will occur - i.e. no final decision is likely to happen. Remember, though, this is our opinion. Nothing is certain, just speculative at this time.

Nevertheless, the meeting itself should be viewed under a microscope, as the end result could send Ethereum to undesired lows, or to unimagined highs. From our subjective stance, if ETH is titled a security by the United States' government, then, obviously, short-term price action may be negative, but as the underlying technology, Ethereum, is borderless and does not depend on the opinion of a regulatory committee from one country, its long-term prospects should be unaffected.

We would also like to inform you, if tomorrow ends in a deadlock - a situation in which no conclusion is made - or ETH is not declared a security, both scenarios, coupled with Etherum’s claims regarding scalability improvements, would bode well for consumers in two respective rights - short-term and long-term. If a deadlock happens, investors will have a short-term sense of relief, which may assist financial gains. Should a conclusion be met in which ETH is not a security, the long-term prospects of the technology and its financial standing within the community would likely prosper.

Within the last week, Joesph Lubin, co-founder of Ethereum, stated: “We spent a tremendous amount of time with lawyers in the US and in other countries, and are extremely comfortable that it is not a security; it never was a security… many regulators that matter understand what Ethereum is.”

Comments of this extent should provide some peace-of-mind, but we cannot objectively state that the SEC, nor any governing body, agree with Lubin's position. We will, as a result, monitor tomorrow's event under the intention of providing you with the most replete understanding of what occurs.