Why the SEC Shouldn’t Classify ETH as a Security (2024)

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e=r.searchBoxForm.querySelector("[name=fr]"),n=r.searchBoxForm.querySelector("[name=fr2]");e&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr&&(e.value=i.searchBox.params.fr,e.disabled=!1),n&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr2&&(n.value=i.searchBox.params.fr2,n.disabled=!1),r.searchBoxForm.submit()}}),1e3)},r.recognition.onspeechstart=function(){},r.recognition.onspeechend=function(){r.recognition.stop()},r.recognition.onerror=function(){r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_error")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play()},r.recognition.onaudiostart=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.add("listening")},r.recognition.onaudioend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("listening")},r.recognition.onsoundstart=function(){r.hideTrending(r),r.noSpeech=!1,r.speechButtonContainer&&(r.speechButtonContainer.classList.remove("listening"),r.speechButtonContainer.classList.add("speaking"))},r.recognition.onsoundend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("speaking")},r.recognition.onstart=function(){r.recognitionInit(r),r.startRecognition(r)},r.recognition.onend=function(){r.isRecognitionStart=!1,0==r.noSpeech&&""==r.speechResult&&(r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_nomatch")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play())},document&&document.dispatchEvent&&document.dispatchEvent(new Event("VOICE_JS_READY"))}}o.I18n=m,o.prototype.renderPermissionGuide=function(e){var n='\n

    \n

    \n

    \n

    \n

    \n

    \n

    \n

    '.concat(e.i18n.t("search.voice.permission_title"),'

    \n

    ').concat(e.i18n.t("search.voice.permission_text"),"

    \n

    \n

    \n

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    \n

    \n

    \n

    \n

    \n

    \n \n \n \n \n \n \n

    \n

    \n

    \n \n \n '.concat(e.i18n.t("search.voice.recognition_retry"),'\n

    \n

    \n

    \n

    \n

    \n

    \n ').concat(e.i18n.t("search.voice.trending_title"),'\n \n

    \n

    \n

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e)&&("SpeechGrammarList"in e||"webkitSpeechGrammarList"in e)}}],d=0;d0){var n=e.speechResult.charAt(e.speechResult.length-1);"."!==n&&"?"!==n&&"。"!==n&&"?"!==n||(e.speechResult=e.speechResult.slice(0,-1))}},o.prototype.sendBeacon=function(n,t){var o=e.YAHOO.ULT||{},i=e.YAHOO.SB||{};if(o.beacon_click){var r={_S:i.config.i13n.spaceid,_I:i.config.i13n.pvid,actn:n,sec:"search",slk:t};e.YAHOO.ULT.beacon_click(r)}},o.prototype.ajaxReq=function(t,o){var i,r,a=XMLHttpRequest.DONE||4,s=new XMLHttpRequest;if(n.documentMode&&n.documentMode<10)return(new e.XDomainRequest).onload=function(){try{r=JSON.parse(i),o(r)}catch(e){return}},s.open("GET",t),void s.send();s.onreadystatechange=function(){if(s.readyState===a)if(200===s.status){i=s.responseText;try{r=JSON.parse(i),o(r)}catch(e){return}}else o(r)},s.open("GET",t,!0),s.timeout=1e4,s.send()},e.YAHOO||(e.YAHOO={}),e.YAHOO.Util||(e.YAHOO.Util={}),e.YAHOO.Util.VoiceSearch=o}(window,document)}();var Wn={containerClass:Un.tooltip,textClass:Un.tooltip__text,showClass:Un["tooltip--show"]},Jn=["zh-hant-tw","zh-hant-hk"];ye("ybar-mod-searchbox",(function(e){var n={ybar:document.getElementById("ybar"),searchInput:document.getElementById("ybar-sbq"),buttonBar:document.querySelector(".".concat(Un["sa-btn-bar"])),voiceSearchBtn:document.getElementById("ybar-sbq-voice"),searchForm:document.getElementById("ybar-sf"),searchBoxIcon:document.querySelector(".".concat(Un["searchbox-icon-uh3"])),searchBoxPlaceholder:document.getElementById("ybar-smartphone-searchbox-placeholder"),searchBoxBackButton:document.getElementById("ybar-search-back-btn"),shopsButtonsWrap:document.querySelector(".".concat(Un["shops-buttons"])),categorySelect:document.getElementById("shops-category-select"),selectedMerchantInput:document.getElementById("selected-merchant-input"),selectedMerchantClearButton:document.querySelector(".".concat(Un["selected-merchant-clear-button"])),submitSearchBtn:document.getElementById("ybar-search"),clearSearchBtn:document.getElementById("ybar-sbq-x")};!function(e,n){var t,o,i,r=e.getConfig();if(n.ybar&&"desktop"===r.device&&(null===(t=r.bucketConfig)||void 0===t?void 0:t.highlight_searchassist)&&(null===(o=r.bucketConfig)||void 0===o?void 0:o.overlay_class)){n.ybar.setAttribute("data-ovrly-bkt",r.bucketConfig.overlay_class),null===(i=n.searchForm)||void 0===i||i.classList.add(Un[r.bucketConfig.overlay_class]);var a=document.createElement("div");a.classList.add(Un.overlay,Un[r.bucketConfig.overlay_class]),document.body.appendChild(a),e.onDestroy((function(){document.body.removeChild(a)})),e.addElementListener(n.searchForm,"focusout",(function(e){if(n.searchForm&&n.searchInput){var t=e.relatedTarget;t&&!n.searchForm.contains(t)&&window.YAHOO.SA&&window.YAHOO.SA.apps&&window.YAHOO.SA.apps[0]&&window.YAHOO.SA.apps[0].view.shown&&window.YAHOO.SA.apps[0].view.hide()}}))}}(e,n),zn(e,n),n.voiceSearchBtn&&function(e,n){var t=e.getConfig(),o=t.locale,i=function(){var e,t;(null===(t=null===(e=window.YAHOO)||void 0===e?void 0:e.Util)||void 0===t?void 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    Why the SEC Shouldn’t Classify ETH as a Security (2024)

    FAQs

    Why isn't Ethereum a security? ›

    Ether was initially classified as a security during its initial coin offering (ICO) but is generally not considered a security now due to its decentralized nature. Ether functions as a medium of exchange but does not meet the traditional definition of a currency.

    Does the SEC think Ethereum is a security? ›

    After declaring in 2018 that Ether is not a security, in 2023 the SEC secretly decided to claim power over this digital asset as a security and has been conducting an invalid investigation into Ethereum.

    What happens if Ethereum is classified as a security? ›

    What happens if they Label Ethereum security? If ETH is labeled a security, it would be subject to securities laws, impacting compliance for developers, exchanges, and possibly holders sell crypto assets, and requiring crypto exchanges to register with the U.S. SEC and follow a strict disclosure regime.

    Should crypto be classified as a security? ›

    The truth is, that still seems to be subjective. The SEC sees cryptocurrencies as securities, necessitating regulatory compliance, while the CFTC classifies them as commodities, focusing on market fairness. This difference impacts regulatory frameworks and efforts are ongoing to clarify the oversight of both agencies.

    Is Ethereum Secure or not? ›

    Anyone can use Ethereum—it's designed to be scalable, programmable, secure, and decentralized—to create any secured digital technology.

    What are the biggest risks to Ethereum? ›

    These include:
    • Lido is a threat to Ethereum security.
    • Ethereum's crowd sale is harmful to the current proof-of-stake system.
    • Ethereum is too complex.
    • Ethereum's high fees will drive users away.
    • Ethereum is only used for financial speculation.

    Is Ethereum regulated by SEC? ›

    The SEC's approval of the Ethereum ETFs comes with specific conditions, including a prohibition on staking ETH via ETH ETFs. If the sponsors of these ETFs want approval to stake ETH, they will need to submit a proposed rule change and wait for SEC approval.

    Why is the SEC trying to regulate crypto? ›

    Reasons for SEC Enforcement of Cryptocurrencies

    Disclosure standards: By regulating crypto markets under securities laws, the SEC is hoping to make these enterprises provide more accurate and thorough information to the public, enabling investors to make more informed decisions.

    Which crypto was sued by SEC? ›

    SEC v. Bittrex, Inc., et al. The Securities and Exchange Commission charged crypto asset trading platform Bittrex, Inc. and its co-founder and former CEO William Shihara for operating an unregistered national securities exchange, broker, and clearing agency.

    What makes a cryptocurrency not a security? ›

    The Securities and Exchange Commission's primary theory on whether a cryptoasset is a security appears to be based upon whether the blockchain project associated with a cryptoasset is, at any point in time, “sufficiently decentralized.”[2] If so, the cryptoasset is not a security.

    What happens if a cryptocurrency is deemed a security? ›

    If a cryptocurrency is a security, cryptocurrency issuers and exchanges must seek the necessary licenses from their securities regulators. This is usually pretty difficult to do, so the crypto industry spends a huge amount of effort trying to ensure that cryptocurrency sales and developments avoid securities laws.

    Is Ethereum controlled by anyone? ›

    More simply, Ethereum is like a big, global computer that anyone can use. But instead of being controlled by one company or person, it's run by many people all over the world. Users can create and run applications without a middleman, using a public digital ledger and a cryptocurrency called ether (ETH).

    Is ETH a security or commodity? ›

    Several years ago the SEC classified Ether as a commodity, but that changed over a year ago without any announcement. It concluded that Ether had become a security following the migration to Ethereum 2.0, which adopted Proof of Stake.

    Why does the SEC think bitcoin is not a security? ›

    He explained that if a cryptocurrency is decentralized enough it creates a situation “where purchasers would no longer reasonably expect a person or group to carry out essential managerial or entrepreneurial efforts.” Expounding upon this analysis, Hinman noted that the disclosure regime of securities regulation as ...

    What crypto does SEC consider a security? ›

    The most notable assets that the SEC named as securities are Cardano (ADA), Solana (SOL), Polygon (MATIC), Cosmos (ATOM), NEAR Protocol (NEAR), Binance Coin (BNB), Filecoin (FIL), and Algorand (ALGO).

    Can Ethereum be trusted? ›

    Ethereum provides a secure blockchain for storing data with built-in smart contract capabilities that allow dApps to operate autonomously. For this reason, Ethereum is the go-to platform for many developers and enterprises embracing blockchain technology.

    What assets are not securities? ›

    A non-security is an alternative investment that is not traded on a public exchange as stocks and bonds are. Assets such as art, rare coins, life insurance, gold, and diamonds all are non-securities.

    Which is safer Bitcoin or Ethereum? ›

    It's difficult to say if Bitcoin or Ether will be the better long-term investment moving forward, but if history is any indication, investors can't go wrong with either one.

    Why is Ethereum risky? ›

    Investors can't readily convert their investment to fiat currency when a cryptocurrency has low liquidity. While Ethereum has better liquidity than others, it also comes with risk. If Ethereum's market participation lowers, it reduces liquidity and can affect your investment.

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