SEC: Ether is OK, but ICOs are toast
After months of speculation and debates, the SEC's William Hinman, head of the Division of Corporation Finance, finally opined on Ethereum. Speaking at the Yahoo All Markets Summit: Crypto conference in San Francisco, he said that many, if not all, ICOs would be classified as securities. "Central to determining whether a security is being sold is how it is being sold and the reasonable expectations of purchasers," he told the crowd.
The cryptocurrency market rebounded immediately. Ethereum has increased ~9% as of the time of writing, but there's no reason to celebrate for the teams who launched tokens on top of the network.
1/ Today, in a speech at the Yahoo Finance Summit, SEC gave landmark guidance on token sales. It finally answered the question “When is a token sale a security?” It’s a Really Big Deal™ and I’m going to break it down here. SPOILER: It's really good and totally reasonable.— Marco Santori (@msantoriESQ) June 14, 2018
Ponder the absurdity of this for a moment https://t.co/eBGv40w4rB— Preston Byrne (@prestonjbyrne) June 14, 2018
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