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Ethereum Labeled Usable Currency by SEC — Will the Price Grow As a Result?

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Ethereum Labeled Usable Currency by SEC — Will the Price Grow As a Result?
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ByBit
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While the taken assumption is that the SEC does not really consider Ethereum as a security, through a lawsuit with KIK, this precedent has been solidified. The SEC now claims that Bitcoin is not a security, and suggests neither is Ethereum's ether.

The SEC has been cagey in determining its scope on the nascent ecosystem, only recently relinquishing Bitcoin from its scope, and now going further to distance itself from Ethereum by labeling its token as a usable currency.

This precedent has been laid out in the lawsuit against KIK, where the wording uses US dollars and ether interchangeably as a currency.

Final confirmation

The SEC’s relationship with the cryptocurrency space has been far from smooth sailing with the securities regulator often cracking down on new coins and ICOs. However, when it comes to regulatory clarity for such projects, there is very little.

This has led many to ask questions about the bigger, more decentralised coins, such as Bitcoin and Ethereum. It is only recently that Bitcoin was deemed not to be a security when, last year, SEC chairman Jay Clayton announced that Bitcoin was not considered a security by the commission.

However, he refused to shed light on the mass of altcoins which conducted ICOs in the past couple of years.

In June of last year SEC director William Hinman said Ethereum’s decentralized structure was such that it didn’t qualify as a security, and now, in the KIK lawsuit, this has been reiterated.

A better investment

The securities dark cloud that has been hovering over many coins has made it difficult to interest investors. Even for the bigger coins, like those in the top five, there was always fear that the SEC could step in.

Now, the SEC has essentially given the green light to Ethereum, making its ether far more attractive to investors. Ethereum, as an investable option, has a lot going for it at the moment and seems to be undervalued. With the SEC making its call, there should a big quelling of any investor fear.

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About the author

Darryn Pollock is an award winning  journalist from Durban, South Africa. He picked up Vodacom’s Regional Sports Journalist Award in 2017 while expanding his Blockchain and cryptocurrency reach.  He is a contributor to Forbes, Cointelegraph, Binary District, and of course, U.Today. Darryn’s belief is that Blockchain technology will be the driving force of the next technological wave and it is the obligation of journalists and writers to tell its emerging story with integrity and pride.

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Bitcoin Can Be Stopped by Governments Simply, Crypto Expert Says, Here’s Why

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  • Yuri Molchan
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    While replying to a utopian tweet of a crypto trader about how the government can stop BTC, Alex Kruger suggests a method that he believes is simpler

Bitcoin Can Be Stopped by Governments Simply, Crypto Expert Says, Here’s Why
Cover image via 123rf.com
ByBit
Contents

Bitcoin was designed as a decentralized alternative to the current financial system offered by banks and governments. The recent examples of this system on the march are the Tron CEO Justin Sun and a venture capitalist Roelof Botha getting their accounts frozen by the Bank of America.

This is impossible with crypto assets unless they are stored on a centralized crypto exchange obedient to the governments. Still, gradually, crypto experts are starting to imagine a state of things in which government would indeed be able to stop Bitcoin from becoming popular. ‘A prevention is better than cure’ principle is working here for them, perhaps.

Bitcoin can be stopped by lack of financial surveillance

This theory was suggested by the crypto trader, Bitcoin lover, @Rhythmtrader. He logically believes that people would choose to give up BTC if the governments would even care to offer them something much better – lack of financial surveillance, elimination of capital controls, no inflation. Sounds quite sarcastic. 

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Bitcoin can be stopped if the governments short it

Another crypto expert, a trader Alex Kruger, believes that in theory there is a much simpler way to stop Bitcoin – a method based on lack of interest from investors. The majority of the crypto community, most likely, is looking forward to the day when they can buy a Lambo or a new house with their BTC yields.

Kruger believes that for the governments to reduce people’s interest here it is enough to short BTC permanently and keep the price below $1,000 for a long while.

Some disagree with the first trader, saying that there is no need for the governments to stop Bitcoin and naming things that prevent a global BTC adoption from happening.

BTC unstoppable
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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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