SEC Chairman Clayton: Ether does not necessarily constitute a Security

the A Letter from SEC Chairman Jay Clayton suggests that it is from the perspective of the U.S. securities and exchange Commission in the case of Ethereum (ETH) for a Security. The letter supports the position of the SEC staff William Hinman. This had freed during a speech in June 2018 ETH from the sword of Damocles of the Security Status.

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The question of whether or not ETH is a Security or not, seems to resolve it to be a bit closer to it. Because SEC Chairman Jay Clayton confirmed in writing in a response that it "agrees with the position that the analysis of whether a digital Asset is a Security or not, depends on the Instrument itself." And further: "Rather, a digital Asset may be offered as a Security [...]. This Status may change over time, so that you can define the Asset as a Security.“

In clear text this means that the SEC digital Assets, such as ETH may not impose, per se, the stamp of a Security. It always depends on the purpose of use of Coins or Tokens, the SEC Chairperson shall:

[...] whether a particular transaction is the sale of a security, regardless of the terminology that is used to identify the digital asset depends on the economic reality of the transaction.

More Details on ICOs

also, Clayton delivers, in terms of ICOs for more clarity. With respect to the Securities Act of 1933, the Chairman emphasized that "all instruments sold as investments, are considered to be Security". This was the case when investors have "a sufficiently secure expectation of a return".

Hinman-speech

the Background of writing a speech was confirmed by William Hinman, in his capacity of Chairman of the SEC division of Corporate Finance. This had been the SEC staff in June of 2018 on Yahoo Finance All Markets Summit. According to the content of the speech for Hinman at this point, that the ETH is true, per se, as a Security.

The news platform Coin Center had employed in the course of this speech Research. You wanted clarity about whether or not it is in the Hinman-Statement of an individual opinion or the official position of the authority.

The answer to write in the text can be found here.

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