What is a Security when it involves Assets? The word Security is defined as “Any proof of ownership or Debt that has been assigned A value and may be sold.”- Thestreet.com
What I think the Securities and Exchange Commision officials define Ethereum as is something that is free from danger and threats as they look into this case. That maybe the right way of looking into Ethereum’s purpose and goals. Here let me Begin.
Issues with The SEC started due to Ethereum launching their Ico in July,2014. When Ethereum Launched their ICO in 2014, they allowed anybody to buy tokens without registering the ICO with the SEC. During the ICO, Ethereum founders raised 31,000 Bitcoins in exchange for 60million Ethereum tokens. Issues also arised from the purpose of investing from the investor’s point-of-view as some only wanted a get rich quick mentality. The ones who bought and sold for that reason are the ones who seem to have broken the law under The SEC guidelines and Trading Policy.
Why is The SEC looking into Ethereum?
Being a Government Agency, The SEC would like to get involved so they are able to “Regulate” the buying and selling of Ethereum. I believe that if Ethereum is defined as a security, The SEC will not stop there as they try and classify other coins/tokens as securities. The true investors of Ethereum think of it as a commodity, claiming that Bitcoin is the digital gold while Ethereum is the digital Oil. The SEC may not be able to regulate the entire Cryptospace which is what may be preventing them from trying in the first place. The reason behind Bitcoin and Ethereum and others is to take control away from the government and give it back the people. We the people argue the Ethereum has no Sole Entity driving Ethereum or it’s price.
Threats and Solutions for Future of Crypto:
Ethereum found Vitalik Buterin has announced that ‘Sharding’ is the solution to the scaling issues face by the ETH platform. Sharding is ment to split Ethereum into several concurrent Networks allowing them to grow in scaling more efficiently. Scaling has been an issue because a lot of ICO’s have been launched on the Ethereum platform, some being legit projects while some being scams. These scams bring bad light to the cryptospace giving the SEC more evidence of needing regulation. Real world use of the Ethereum block-chain came to a surpise to everyone, The North Korean and South Korean deal was recorded on the block- chain.
I leave this question here and a Quote:
What changes if Ethereum is classified to be a Security? Is Ethereum a commodity or a “Grey Zone” security?
We are what the market tells us we are.