SEC Directory Says Ethereum Is Not a Security
SEC director of the division of Corporate Finance, William Hinman, said that “as currently structured” Ether will not be regulated as a security. While this is significant news, it should be clarified that this is only the opinion of Direct Hinman and not the SEC’s official position. However, it can provide a glimpse to where the SEC might be heading in regulating Ethereum.
CBOE Looks to Launch Ethereum Futures
In response to Director Hinman stating Ethereum is not a security, Chicago Board Options Exchange chimed in this week saying,
“We are pleased with the SEC’s decision to provide clarity with respect to current Ether transactions. This announcement clears a key stumbling block for Ether futures, the case for which we’ve been considering since we launched the first Bitcoin futures in December 2017.”
Circle CEO — “We are at the beginning of tokenization of everything”
Circle CEO provides visionary insight into what they see developing in cryptocurrencies.
“Once you have an open global immutable record-keeping system, [a] transaction-processing system and [a] secure computing environment, you can re-conceptualize on a global basis every aspect of finance… corporate and commercial law, the intermediation of contracts, [and] crucially all of the systems we use in [both corporate and civic] decision making.”
South Korean Banking Group Launching Blockchain ID Verification Platform
Korean Federation of Banks announced that they will be launching “Banksign” identity verification system, a blockchain powered customer ID verification platform.
SEC Appoints Senior Advisor for Digital Assets
SEC announces appointment of Valerie A. Szczepanik, who will be the Associate Director of the Division of Corporation Finance and Senior Advisor for Digital Assets and Innovation for Division Director Bill Hinman. Her regulatory viewpoint seem to be a lot more flexible than Jay Clayton’s.
We should see a case-by-case and collaborative effort towards regulating cryptocurrencies rather than a blanket approach.
China Enthusiastic for Blockchain, Against Cryptocurrencies
China looking to promote blockchain developments over cryptocurrency investments as they have banned ICO’s, banned P2P and OTC markets, and blocked access to offshore exchanges and ICO websites.
President Xi is very enthusiastic with blockchain technology stating it is part of the “technological revolution” and broadcasting, through their central state TV station, that “the value of blockchain is 10 times that of the internet.”
UT Austin Study Finds Potential Market Manipulation
Research study from University of Texas at Austin states claims that purchases in Tether amongst exchanges during downturns results in propping Bitcoin price on exchanges.The authors explain,
“By mapping the blockchains of bitcoin and tether, we are able to establish that entities associated with the Bitfinex exchange use tether to purchase bitcoin when prices are falling. Such price supporting activities are successful, as Bitcoin prices rise following the periods of intervention. These effects are present only after negative returns and periods following the printing of tether.”
Major Coinbase Announcements
Ethereum Classic Support On Coinbase
Coinbase announces they will be adding Ethereum Classic to their exchange. They will also offer digital asset custody for assets on their exchange.
One day after this announcement, Coinbase announces the launch of Coinbase Index Fund stating,
We’ve seen overwhelming interest from investors since we announced the fund earlier this year. At this stage, we have opened the fund to those who wish to invest $250,000 to $20M.
About the Author
Eric Nemeth (LinkedIn): Business Development Associate at Everbloom | Studied Economics at Boston College | Interested in tokenizing real assets | International traveler | Futbol loving Chelsea fan.
