The news that Ether is no longer considered a security has been in circulation for the past few days. Tom Lee, a Wall Street cryptocurrency analyst, commended the Securities and Exchange Commission in the United States after William Hinman said that Ether and Bitcoin are not securities. He also said that with the new explanation, 65% of the cryptocurrencies in the industry are cleared as commodities.
65% of Cryptocurrencies are Commodities According to SEC's New Verdict
The question of which cryptocurrencies are securities and which are commodities has been a debate that may have prevented the inflow of institutional investors to the cryptocurrency industry. With the clarification, institutional investors will have more incentive to tap into the industry. It will also pave a way for the mainstream adoption of cryptocurrencies.
Many firms have been hesitant to invest in cryptocurrencies because they were scared of investing in products that will later be marked as unregistered securities. The top cryptocurrencies no longer have this problem.
In response to the comments by William Hinman, Tom Lee said:
“The SEC's clarity on Ether and Bitcoin means that 65% of the cryptocurrencies in the market will qualify as commodities. This includes BTC, BCH ETH, LTC. This makes the roadmap for institutional investors clearer.”
Bitcoin, Ether, Bitcoin Cash, and, Litecoin all together make up for $183 billion as per market capitalization. At the time this piece was written, the cryptocurrency market was hovering above $283 billion. Ethereum Classic might also fit the description of a commodity.
The bottom line is that the major assets in the market are now fair game for institutional investors as well as retail buyers.
The fact that SEC said Ether is not a security is indeed heartwarming for the cryptocurrency space. Regulatory uncertainties have plagued the industry for too long and it's only fair that things get stabilized. This new verdict will bring some stability on the regulatory front.
Posted from my blog with SteemPress : https://smartereum.com/19245/following-secs-remarks-that-ether-is-not-a-security-fundstrats-tom-lee-says-65-of-all-cryptocurrencies-are-commodities/