SEC vs Ethereum 


Fortune reported that the US SEC is investigating several crypto companies and is considering classifying Ether as a security.


How realistic is this news?


I have no doubt that the commission may well take such a step. Recently, the SEC has faced setbacks. The forced approval of Bitcoin-ETF has boosted the market, while SEC Chairman Gary Gensler has already several times spoken extremely negatively about Bitcoin.




The recognition of ETH as a security would deal a serious blow to many crypto-companies. ETH - the second most capitalized cryptocurrency, it is used in many projects. Thousands of companies may be threatened with prosecution.


How fair is the SEC requirement?


They are absolutely unjust. Indeed, on formal grounds some cryptocurrencies can be considered securities. Moreover, the blockchain is convenient for issuing securities based on it, however, this does not concern the Ethereum. Even superficial analysis with Howie’s test shows that we’re looking at anything but the security. So, if the commission’s decision is followed, it will be politically motivated. 


However, any decision of the commission is not the final verdict. Remember that Ripple faced a similar problem. Then it all ended in a draw, which Ripple may well put on his account. 

The logic of the SEC seems incomprehensible. It seems that the commission is purposefully looking for objects to attack in the crypto business. If that is the case, the situation is bleak. The public authority must be impartial and completely unbiased. If a government body becomes biased, all the more so if bias is based on the personal position of its leader, then this collapses the foundation of business. 


However, such a policy could be counterproductive to the SEC itself. Note that ETH has grown amidst rumors of regulator claims. This shows the loss of authority of the SEC, its threats are not believed. A year ago, such rumors would have provoked a fall in the market, but now the market does not believe in the success of the commission.


#SECvsEthereum #CryptoRegulation #ETHSecurity #SECThreats #CryptoAuthority

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