{"id":374475,"date":"2019-03-12T22:00:11","date_gmt":"2019-03-12T22:00:11","guid":{"rendered":"https:\/\/uniquehot.com\/?p=374475"},"modified":"2019-03-12T17:17:55","modified_gmt":"2019-03-12T17:17:55","slug":"sec-affirms-stance-that-ethereum-eth-is-not-a-security-could-xrp-be-next","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/sec-affirms-stance-that-ethereum-eth-is-not-a-security-could-xrp-be-next\/","title":{"rendered":"SEC Chairman Affirms Stance that Ethereum (ETH) is Not a Security, Could XRP be Next?"},"content":{"rendered":"
The Securities and Exchange Commission’s (SEC) Chairman reaffirmed his agency\u2019s previous stance that Ethereum (ETH) is not a security product, and as such it falls under different regulatory structure that is far more crypto-friendly. He also added that cryptocurrencies similar to Ethereum are also exempt from being classified as securities \u2013 although he didn\u2019t name any specific cryptos.<\/p>\n
Although this is certainly positive for Ethereum investors, it doesn\u2019t come as a big surprise, and the cryptocurrency that investors are most interested in hearing what the SEC’s thoughts on is XRP \u2013 the cryptocurrency<\/a> most commonly associated with FinTech company Ripple.<\/p>\n Although many investors and crypto enthusiast see regulatory agencies like the SEC<\/a> as the \u201cboogeyman\u201d who is out to halt innovation that could pose risks to investors, Clayton explained in a recent response<\/a>\u00a0to a letter from Coin Center that he believes the agency has taken a balanced approach towards regulating the nascent markets.<\/p>\n \u201cOverall, I believe we have taken a balanced regulatory approach that fosters responsible innovation in this area, while also protecting investors and the markets,\u201d Chairman Clayton explained while referencing the application of federal securities laws to digital assets.<\/p><\/blockquote>\n Importantly, along with affirming his agency\u2019s previous decisions regarding the classification of cryptocurrencies like Bitcoin and Ethereum as non-securities products, Clayton also explained that they will continue to use the \u201cHowey test\u201d along with other tests developed through case law to determine the regulatory status of assets.<\/p>\n \u201cGenerally, we look at whether the digital asset fits the definition of a security as set forth in the federal securities laws\u2026 We also apply tests developed through case law, including the well-established \u2018investment contract\u2019 test articulated by the Supreme Court in SEC v. Howey and its progeny,\u201d he noted.<\/p><\/blockquote>\n It has long been speculated that XRP could be a securities product under the regulatory frameworks set forth by the SEC \u2013 and the cryptocurrency\u2019s close relationship to FinTech company Ripple hasn\u2019t helped its case.<\/p>\nJay Clayton: SEC Has Taken a Balanced Regulatory Approach Towards Crypto<\/strong><\/h2>\n
Could XRP be a Securities Product?<\/strong><\/h2>\n