Good news for Ethereum, other cryptocurrencies
The SEC won’t let me be (or will they?)… If you were on planet Earth in 2017 than you probably caught wind of the cryptocurrency madness. The top three cryptocurrencies: Bitcoin, Ethereum, and Ripple climbed 4.9%, 7.7%, and 5.9%, respectively, on Thursday. Predictably, these price increases can be attributed to the SEC determining that Ethereum is not a security after all.
No security? No problem… At least that is how “crypto-investors” are feeling. The SEC has ruled that Ethereum is “sufficiently decentralized.” In English, this means that decision-making is spread out so that not one individual can receive information that can be used to their unfair advantage (think insider trading). This is the SEC saying that Ethereum, among other decentralized cryptocurrencies, are not worth their time.
The bottom line… The most popular cryptocurrencies, Bitcoin and Ethereum, needn’t follow the same rules designed for stocks. For now, we have escaped the regulatory crackdown that many were totally unsure about – finally, some good news for the crypto enthusiasts.