The SEC says Ethereum’s cryptocurrency isn’t a security
The US Securities and Exchange Commission has finally weighed in on the debate over whether Ethereum’s crypto-token, ether, should be regulated like a stock or bond.
The news: William Hinman, director of the SEC’s division of corporation finance, said in prepared remarks today that “current offers and sales of ether are not securities transactions,” due to Ethereum’s “decentralized structure.”
Why it matters: The comments bring clarity to a discussion that has intensified in recent months after the New York Times reported that the SEC was considering subjecting ether to relatively strict securities regulations. The question hinges on whether investors are buying tokens with the expectation that they will increase in value based on the efforts of others. Many in the community feared that such a designation would lead to a slowdown in investment and development across the industry.
What about Ripple? At MIT Technology Review’s Business of Blockchain conference in April, Gary Gensler, former head of the US Commodity Futures Trading Commission, said there was a strong case that ether as well as Ripple’s crypto-token, XRP, should be regulated as securities. Notably, Hinman’s statement today included no mention of Ripple.
Keep Reading
Most Popular
Large language models can do jaw-dropping things. But nobody knows exactly why.
And that's a problem. Figuring it out is one of the biggest scientific puzzles of our time and a crucial step towards controlling more powerful future models.
OpenAI teases an amazing new generative video model called Sora
The firm is sharing Sora with a small group of safety testers but the rest of us will have to wait to learn more.
Google’s Gemini is now in everything. Here’s how you can try it out.
Gmail, Docs, and more will now come with Gemini baked in. But Europeans will have to wait before they can download the app.
This baby with a head camera helped teach an AI how kids learn language
A neural network trained on the experiences of a single young child managed to learn one of the core components of language: how to match words to the objects they represent.
Stay connected
Get the latest updates from
MIT Technology Review
Discover special offers, top stories, upcoming events, and more.