Ether explodes higher after SEC news

The statements are the latest in a long line of remarks that have found various regulatory officials opining on whether the nature of the sale in which ether was issued made it subject to USA securities laws.

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

A SEC spokesman has stated in a recent speech that Bitcoin (BTC) and Ethereum (ETH) are not securities, however, ICOs are securities and they are therefore under the regulatory purview of the SEC.

When we think about how ether today is operating, at least, we see a highly decentralized network... "We believe that the current offers and sales of Ether are not security transactions". It has fallen more than 60 percent since its peak in January. Minutes after Hinman began speaking, the price of bitcoin spiked by almost 3 percent, according to Coinmarketcap.com. "With this guidance, the SEC is showing that taking a pro-innovation approach does not have to come at the expense of protecting investors". Dozens of probes into initial coin offerings (ICOs) and other get-rich-quick promises led to cease-and-desist letters from the state regulators.

Ripple's XRP token, the third most valuable digital coin, also rose Thursday even though Hinman's comments suggest the SEC might deem it subject to the agency's rules.

For the SEC not to regulate bitcoin and ether could create some risks for investors, said David Sirignano, a partner at the law firm Morgan Lewis.

"... strictly speaking, the token - or coin or whatever the digital information packet is called - all by itself is not a security ..."

In many cases, but not all, companies that handle cryptocurrencies comply with tax, banking and other regulations that aim to protect consumers.

Officials at the Commodity and Futures Trading Commission (CFTC) had long urged the SEC to clarify its position on ether, and the two agencies had been discussing how the currencies were first offered. Securities laws aim to add an additional layer of safety beyond ordinary consumer protection law, analysts say.

Ether is the second-largest cryptocurrency by market cap after bitcoin and is powered by a technology called Ethereum.

The commission's policy is in line with what SEC Chair Jay Clayton said recently about bitcoin: that cryptocurrencies are not securities and the definition of "security" would not change to include bitcoin.

(Copyright © 2015. All Rights Reserved.)
 
Recommended

Meghan Markle's wedding dress 'last moment' to reflect her 'human side'
So while it may have looked like the Royals were excluding Meghan at the occasion, it turns out she was just following protocol. They could've gone anywhere since they're royalty and all-one rumor said that they'll be spending it in Canada and Ireland.

Drake Gives 'Degrassi' Fans A Surprise Reunion In Newest Music Video
It's insane to think about how many times we have all cried, laughed, and smiled with the teens of Degrassi Community School . The video begins with Drake waking up in a bed that's set up in the middle of the Raptors court at Air Canada Centre.

Mark Sanford: I pledge allegiance to the flag, not to Trump
There is something refreshing about having the Republican Party's cowardice out in the open, acknowledged by its own members. And on Tuesday, Sanford became the latest Republican punished by voters for criticizing Trump, losing narrowly to state Rep.

Roseanne Barr insists racist tweet was about anti-Semitism
Now, Barr is claiming the tweet was an attempt at making a statement on anti-Semitism. Barr initially blamed the sleeping pill Ambien for her Jarrett post.

United North American bid awarded 2026 FIFA World Cup over Morocco
Cheryshev chipped the ball over two Saudi defenders in the 43rd minute and shot over goalkeeper Abdullah Al Muaiouf's right side. The World Cup will go from a 32-team tournament to 48, however the victor will play the same amount of games (7) as they do now.

Griezmann rejects Barcelona to stay at Atletico Madrid
This special was filled with clips of Griezmann contemplating his move. "They are making an effort to bring top players". France Football reported Griezmann will sign a new contract in Russian Federation at some point on Thursday.

Resident Evil 4 HD Project mod has a release date
The final game will once again have separate campaigns for Leon and Claire Redfield, just like the original. What hasn't changed is the original version of Resident Evil 2's brilliant horror atmosphere.

Liverpool transfers: Fresh hope over Alisson deal after Roma comments
Liverpool's big-money move for Nabil Fekir collapsed amid reports of a disagreement between the Reds and Lyon following the Frenchman's medical.

Obama meets with Democratic presidential aspirants about 2020
Former President Barack Obama has apparently met with several Democrats who are considering a run for president in 2020. For the latest breaking news and stories from across the Tri-State, follow Eyewitness News on Facebook and Twitter .

NWS: Tornado with 130mph winds struck Wilkes-Barre, Pa.
A powerful storm damaged the Panera Bread restaurant in the Arena Hub shopping area in Wilkes-Barre Township, Pa., on Wednesday. Mundy Street was closed from Highland Park Boulevard to Tambur Boulevard all day Thursday, as was the Wyoming Valley Mall.

Saudi crown prince arrives in Russian Federation for World Cup opener against Russian Federation
The visitors failed to get a single shot on taget in the contest between the two lowest-ranked teams at the tournament. Artyom Dzyuba made an instant impact off the bench to make it 3-0 in the 71st with a header off Golovin's cross.

Arron Banks to face MPs in parliamentary showdown over Russian Federation links
Giles Watling, a Conservative MP on the committee, asked Banks: "I'd like to move on to big scary Russian Federation ". During the earlier hearing, Mr Banks admitted he "led people up the garden path" during the referendum campaign.

Samsung’s Foldable Smartphone Could Cost $2,000
The company was one of the firsts to bring true infinity display which is now common in many phones including Apple iPhones. Kim also says that the device will sport a 7.3-inch OLED screen when opened and 4.5-inches when folded.

Antarctica’s ice melt is increasing rapidly, study finds, threatening coastal communities worldwide
Altogether, across the continent, 34,000 square kilometers (13,000 square miles) of the ice shelf has been lost since the 1950s. It uses combined satellite data to measure the Antarctic ice sheet's changing flow and volume.

De Niro's two-word outburst stuns
Canadian Foreign Minister Chrystia Freeland said her nation "does not conduct its diplomacy through ad hominem attacks". It was hardly the first time that De Niro, who was born in NY and lives in the city, attacked fellow New Yorker Trump .


More News

News
More News