SEC: ETH in the Clear, XRP & Others in Possible Danger?

On Thursday, William Hinman, director of the SEC’s division of corporate finance, said that Ethereum will NOT be regulated as a security by the SEC.

His comments mean that BTC and ETH is now in the clear. But what about other cryptocurrencies? What are the implications of his comments?

That's what I go through in this video.

DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.

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Ethereum not being a security has definitely cleared some smoke/speculation hanging over the market. Then we have the fact that the same questions that were asked of Ethereum can also be asked of other coins.
As you spoke I tried to document the facts for my own understanding:
Two dimensions to determine whether a crypto can be considered a security or not. 3rd party element and characteristics of the digital asset itself.
I assume that 'drive the expectation of return' to directly be able to gain form the increase in the value of the 'security' and as such hold it and promote it for that purpose. Not to forget the fact that he also said that the presented list of these characteristics is not exhaustive. The following is the list of 3rd party aspects:

  1. A centralized group/person being significantly responsible for creation/support/promotion of the digital asset
  2. Is this group still holding a stake in the digital asset and thus have a reason to promote the digital asset. Similarly other people holding the said asset believe that such promotion may benefit them (due to price increase)
  3. More funds were gathered than need to start operation. How was this excess fund allocated and whether the promoter is still gathering funds with an eye towards increasing functionality of digital asset.
  4. Are investors looking to make profit. That includes the fact that the instrument in question is sold to general public instead of potential users of the said network.
  5. Does the application of 'Securities Act Protection' make sense.
  6. Do other investors have decent say in the project

The list of characteristics of the digital asset itself:

  1. User centric or speculation centric
  2. Is the promoter able to influence the trading
  3. Is the digital asset for personal use(consumption) or is it an investment
  4. Is the token distribution such the users can buy when they need it and how much they need or the value of token changes so they might have to decide when to buy (at high price or low price) making the token a direct investment.
  5. Token distribution to potential users or general public.
  6. Is the asset widely distributed or a few people have a power of influencing the application
  7. Application fully functional or still developing

.................Yeah Ripple is in trouble and I own a lot of it. Shit!!!

Took me half an hour but writing it down has cleared a lot for me.

Definitely XRP. I certainly agree with you. In my opinion EOS is not in much of a danger just because I’m invested in it and I just can’t be wrong about this one, or can I? Whether it is or not, I’m trying to be diversified. I own both ETH and EOS. If EOS goes it goes. I’m pritty sure there are going to be plenty of ICO’s in danger as security. At the end every single ICO can be considered a security which would eventually mean its their goal to regulate them as security.

Recent news was just a confirmation to what you already knew. Even though ETH was in a bigger danger I think it’s even better news when they included bitcoin as well. When it comes to other ICO’s, I’m up for some kind of regulation to at least try avoid potential scams. Honestly, I have never been fan of XRP since I’ve heard about it being more centralized cryptocurency just because the ripple is the holder of majority of XRP. That’s a red flax for me. There are people cheering up XRP, but I think they are wrong. I’m not surprised you mentioned EOS since I know you opinion about it 😆. It will be very interesting what eventually comes out if it.

It is amazing news, and markets are reacting positively to this development. Alt coins are not as lucky though. Oh well. Good video as always mr. Louis

I think this is the best news for crypto currencies to remain independent from government regulation and interference, it shows that ethereum and blockchain in general is set for a great future to empower the masses and society. Decentralization is the future for all to embrace and reap it's benefits @louisthomas

Nothing is in danger , they all will be clear like btc and eth in the end of the day just give it a bit of time

According to me @louisthomas this could be good as well as bad news too. Well right now the crypto market did come up a little and it seems that the good times are coming near.
BTC and Eth are the powerful crypto coins currently and they are surrounded by some controversies that is why.

Thanks for the heads up many were indeed worried about it .

While lets see what happens with the other crypto's !

They still need to draft a better framework to clarify for potential new projects. Overall, I think it will be positive as projects will continue to look for capital to launch and develop protocols and guidance on the best way to do it will be needed.

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