Ethereum is not a security
Issue: 040
Rollercoaster week for Bitcoin
A new study indicates that Bitcoin was indeed manipulated by Tethers for much of 2017. The study suggests that as much as half of the price increase last year can be attributed to the printing of tethers.
Another crypto-exchange, South-Korean based Coinrail, was hacked, losing a reported $40M.
SEC officials say Ethereum is not a security
SEC officials stated there belief that Ethereum is decentralized enough that it no longer qualifies as a security.
“And putting aside the fundraising that accompanied the creation of Ether, 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. And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value. Over time, there may be other sufficiently decentralized networks and systems where regulating the tokens or coins that function on them as securities may not be required. And of course there will continue to be systems that rely on central actors whose efforts are a key to the success of the enterprise. In those cases, application of the securities laws protects the investors who purchase the tokens or coins.”
Coinbase makes big announcements
- The company announced support for Ethereum Classic
- Coinbase will now be accepting investments into their Coinbase Index Fund. Check size range between $250,000 to $20M
- Coinbase is on track to become a registered broker-dealer, allowing them to offer blockchain-based securities
