eToro UK MD Comments on Recent Remarks of SEC Director of Corporate Finance
William Hinman, the United States Securities and Exchange Commission (SEC)’s director of corporate finance recently said at Yahoo Finance’s All Market Summit that Ether is not a security.
“… based on my understanding of the present state of Ether, the Ethereum network, and its decentralized structure, current offers and sales of Ether are not securities transactions.”
William said that SEC does not consider Bitcoin to be a security either. Instead, the commission believes both the cryptocurrencies to function in a way much similar to commodities such as gold, silver, and oil.
However, he did say that not all coins are equal. That is to say, that the leniency on the top cryptocurrencies won’t free tokens from scrutiny. Initial Coin Offerings and Tokens would most likely be considered securities even in the future.
According to the commission, there is a distinction in how the asset is sold or offered to the public. William said:
“… strictly speaking, the token — or coin or whatever the digital information packet is called — all by itself is not a security … But the way it is sold — as part of an investment; to non-users; by promoters to develop the enterprise — can be, and, in that context, most often is, a security — because it evidences an investment contract.”
Iqbal V Gandham, UK Managing Director of eToro, a global investment platform, commented on the remarks of William Hinman, the United States Securities and Exchange Commission (SEC)’s director of corporate finance by saying:
“This is the latest in a series of events which demonstrate how cryptos are pervading mainstream thinking. What is striking is the in-depth discussions that have clearly gone on behind the scenes, especially around the implications of ICOs.”
He later added:
“We know that institutional investors are waiting for regulatory clarity to move from the sidelines to the center of the playing field. Remarks like this suggest it might not be long to wait until we get there.”
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