SEC Reiterates It Does Not Consider Ether As Security
Jay Clayton, the chairman of the US regulator SEC, suggests that ether cannot be qualified as security and has several significant differences, The Block reports.
He agreed with the method proposed by William Hinman, the SEC Corporate Finance Director, last July. His approach allows determining which cryptocurrencies can be equated to securities. After analyzing the networks of ether and bitcoin, their decentralized structure, and current sales, Hinman said that these assets cannot be considered securities.
Clayton notes that the nature of cryptocurrency is not static and may change with time. He claims that the main difference between a digital asset and security is in the way it is offered. A token is usually sold as an investment contract. Whether it can be considered a digital asset or not, depends on a number of facts and circumstances, like the economic characteristics of the transaction.
For example, a token may initially be sold as security and fit the appropriate definition, but another day it starts being offered as another financial instrument and can no longer be referred to securities, Clayton assures.
It is noteworthy that the Colorado government has recently signed a new Digital Tokens Act, which exempts some cryptocurrencies from the Securities Act. Under the new rules, broker-dealers and merchants no longer need a license if they work with the so-called consumptive tokens (created to purchase goods, services or content).
As previously reported, the Texas authorities want to prohibit anonymous transactions.