Ethereum (ETH) is Not a Security

Chairman of the United States Securities and Exchange Committee, Jay Clayton, has put to rest some doubts about the status of tokens like Ethereum as a security, after he responded to a clarification request sent by advocacy group Coin Center. The clarification letter was co-signed by Congressman Ted Budd.

Last year, Director of the Division of Corporate Finance, William Hinman, made a statement saying that he believed that Ether is not a security:

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.

Questions arose as to whether this opinion was only held by the SEC staff or whether it was the official opinion of the regulatory body.

Thus, Congressman Budd of North Carolina and Coin Center asked Clayton to clarify, to which the SEC Chairman responded:

I agree with Director Hinman’s explanation of how a digital asset transaction may no longer…

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