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Bitcoin and Ether are Not Securities


At Yahoo Finance’s All Market Summit: Crypto on June 14, U.S. Securities and Exchange Commission Director William Hinman announced that Bitcoin and Ether would not be considered securities. “Based on my understanding of the present state of ether, the Ethereum network, and its decentralized structure, current offers of sales of ether are not securities transactions,” Hinman said. “And, as with bitcoin, applying the disclosure regime of the federal securities laws to current transactions in ether would seem to add little value.”

In turn, innovators in the decentralized technology space are committed to working with regulators to promote a more compliant crypto landscape than ever before. Joe Lubin, co-founder of Ethereum and founder of ConsenSys, a major Ethereum application company, expressed gratitude for the SEC’s decision and said “Ether and other next generation consumer utility tokens will continue evolving the web towards networks that are more fair, secure, and evenly distributed.”

Ultimately, I believe that the SEC’s announcement is a big win for the crypto industry as a whole, as it helps resolve some of the regulatory uncertainty that many experts, such as Tom Lee, believe is contributing to market stagnation.

Many crypto enthusiasts, who were initially drawn to the formerly unregulated sector because of its decentralization and anonymity, feared that the increase in regulatory measures would infringe upon all they valued about crypto in the first place. But with time, it’s becoming clearer that the regulators and the decentralized technology sector in fact have a respectful, productive, and cooperative relationship, and are committed to working together to make the financial landscape more compliant than before. Let’s take a closer look.

CFTC “Do No Harm” Approach Set a Positive Precedent

Back in February of this year, Chairman of the CFTC J. Christopher Giancarlo set a precedent for a productive relationship between regulators and the decentralized technology sector when he advocated for a “do no harm” approach. “I believe that ‘do no harm’ is the right overarching approach for distributed ledger technology…With the proper balance of sound, regulatory oversight, and private sector innovation, new technologies will allow American markets to evolve in responsible ways and continue to grow our economy and increase prosperity,” Giancarlo said.

While this balanced sentiment may have seemed unrealistic to skeptics in the crypto space when it was first announced, I believe there has been continual cooperation between regulators and many crypto-based businesses and decentralized technology companies ever since.

Gemini Launches Nasdaq’s Market Surveillance Technology

In April, Nasdaq and cryptocurrency exchange Gemini announced that Gemini would be leveraging Nasdaq’s SMARTS market surveillance technology to monitor its marketplace. “Since launch, Gemini has aggressively pursued comprehensive compliance and surveillance programs, which we believe betters our exchange and the cryptocurrency industry as a whole,” said  CEO of Gemini Tyler Winklevoss.

In fact, Nasdaq has proven to be just one of many financial institutions that has demonstrated interest in working alongside the crypto space. Hires General Counsel and Senior Compliance Officer, the world’s largest and most secure cryptocurrency IRA platform that allows customers to purchase Bitcoins and other cryptocurrencies, appointed by Maryann Bullion as its General Counsel and Senior Compliance Officer in March. “We are focused on providing unparalleled products for our clients that not only adhere to the most secure measures, but also uphold the most stringent compliance guidelines,” said Camilo Concha, CEO and co-founder.

“I strongly believe in the future of cryptocurrencies and blockchain technology and the opportunity it presents for investors within a retirement account,” said Bullion. “I am excited to work with the executive team to streamline the compliance framework and to provide the safest and most efficient products and processes for its customers.”

To learn more about how you can diversify your retirement portfolio with Bitcoin, Ethereum, and other cryptocurrencies, give a call today at 877-936-7175.

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