ETH, the native token of the Ethereum blockchain, has been a topic of discussion lately. While its status appears to have been settled by the US Securities and Exchange Commission (SEC) some time ago, the move to PoS consensus apparently gave SEC Chairman Gary Gensler an opportunity to examine the token again.
Gensler adamantly asserted that the crypto industry is completely reckoning on such matters, stating repeatedly that the rules that constitute securities are completely clear, transparent and can only be understood in one way. .
So is ETH a security, a commodity, or something else? Many experts have clearly answered this difficult question.
William Hinman, Director of Corporate Finance, SEC, explain June 2018:
“Based on my understanding of the current state of ETH, the Ethereum network, and its decentralized structure, current offers and sales of ETH are not securities transactions.”
Dear New York Attorney General Letitia James, reply March 2023:
“Tokens (including ETH) are securities because they involve the investment of funds in a common enterprise with the expectation of profiting from the stewardship efforts of the token founders and developers, as well as the management team”.
However, Letitia James also Comment March 2023:
“ETH, LUNA, and UST are all commodities under state and federal jurisdiction.”
SEC Chairman Jay Clayton, additional Adding to Hinman’s comment above in March 2019:
“A digital asset may initially be offered and sold as a security because it meets the definition of an investment contract, but that designation may change over time if the digital asset is subsequently offered and sold in a manner that no longer meets the definition of an investment contract .”
CFTC Chairman Rostin Behnam commented in May 2022:
“I can say with certainty that Bitcoin — the largest coin, and it will always be the largest regardless of the total market capitalization of all digital assets — is a commodity. So is Ethereum. commodity.”
SEC Chairman Gary Gensler, April 2023 (refused to answer actual questions):
“Well, under the Commodity Exchange Act, all securities are actually commodities and are excluded commodities, but I agree that a security cannot be both an excluded commodity and an included commodity. Included”.
Based on the statements above, choose an answer for yourself:
1. ETH is not a security.
2. ETH is a security.
3. ETH is both a security and a commodity.
4. ETH used to be a security, not anymore.
5. ETH is a commodity.
6. Gary Gensler is making things up.
7. All of the above.
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Mingying
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