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The SEC said Bitcoin and Ethereum and other cryptocurrencies are not securities

Author:Hubi Date:2018-07-25 14:51:48

On June 14, William Hinman, head of corporate finance at the Securities and Exchange Commission (SEC), addressed the Yahoo! Market Summit and claimed that cryptocurrencies such as Bitcoin and Ethereum are not securities.

Whenever a long drought hits nectar, the news came out and the depressed market reacted strongly. Some digital currencies suddenly surged by more than 10%.

Who is William Hinman?

The department headed by him is mainly responsible for supervising and guiding the compliance of listed companies, protecting investors’ right to know and supervising new financial products.

Its status is of utmost importance in the SEC. Especially on the issue of whether the Blockchain Assets Securities are securities, it can be said that his opinion is extremely important.

If a blockchain pass is identified as a security, the ICO's behavior will be strictly governed by the Securities Act. Registration and long-term lock-in are necessary, and there will be very strict requirements on circulation and information disclosure.

If the blockchain pass is not a securities, then the SEC has no power to supervise it. With sufficient market demand, the proliferation of ICOs is likely to continue.

William Hinman made it clear in his speech that the two key attributes of “decentralization degree and real application scenario” are the most critical points for obtaining the "certificate of securities identification exemption."

Moreover, he clearly illustrated Bitcoin and Ethereum, emphasizing that their full decentralization is a "non-securities" euthanasia medal.