From Twitter, compliments of Anthony “Pomp” Pompliano an hour earlier: “BREAKING: SEC Chairman confirms Ethereum is not a security”.
The market’s taking this news in stride – perhaps because this is a confirmation of a previous statement by SEC chair Jay Clayton – but I still think it’s a significant announcement.
The two top coins in the world – BTC & ETH – have now been deemed by the SEC to not be securities. Can we get a ruling on the other 4,998 coins and tokens in the crypto universe.
Wrong glass, sir. You gotta be kinda old like me to get my movie references😌
Back to ETH: this is big news. Just a week ago, Fidelity politely declined to add Ethereum (or any coin not named bitcoin) onto its platform. Removing the threat of a billion-dollar clawback for securities violations wasn’t specifically cited as a reason, but come on – have you ever sat in a compliance meeting with regulators & corporate attorneys. This is now one exogenous shock to no longer be worried about.
What this means for other coins like Litecoin, XRP, PutinCoin, MickeyMouseCoin is less clear.
This isn’t case law – but it’s something. A framework. At least now future projects have a template; others have clean up to do. There will be fines. But clarity matters; you can build atop a rules-based system.