- Ether, the cryptocurrency powered by the Ethereum blockchain, was trading up over 7% after a Securities and Exchange Commission official said the agency did not view the crypto as a security.
- Such a designation would put the token under the agency’s authority.
- Watch ether trade in real time here.
Ether, the cryptocurrency powered by the Ethereum blockchain, spiked Thursday after a Securities and Exchange Commission official said the agency did not view the crypto as a security.
Speaking at Yahoo Finance’s All Markets Summit, William Hinman, the SEC’s director of corporate finance, said the agency did not view bitcoin or ether as securities. Such a designation would require certain exchanges that facilitate trading of the cryptos to register with the agency. Thursday’s announcement was the first time the SEC provided regulator clarity on specific coins.
“Based on my understanding of the present state of ether, the Ethereum network, and its decentralized structure, current offers and sales of ether are not securities transactions,” Hinman said.
Bitcoin has long been viewed by market participants as a commodity, which falls under the auspices of the Commodity Futures Trading Commission. But it has been less clear whether regulators would deem ether, which…
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