4 Reasons Why Ethereum Is Not a Security: Consensys
Ethereum has come under scrutiny from the Securities and Exchange Commission (SEC), which has hinted at classifying it as a security. This move by the SEC has sparked controversy, especially after a clear stance in 2018 that Ethereum did not meet the criteria of a security. Blockchain software company Consensys has firmly positioned itself against the SECs reconsideration in light of these events. Here are four compelling reasons supporting why Ethereum should not be deemed a security. 1. Historical SEC Stance on Ethereum In 2018, William Hinman, then Director of the Division of Corporation Finance at the SEC, made a significant speech indicating that Ethereum was not considered a security. “Isinasantabi ang pangangalap ng pondo na sinamahan ng paglikha ng [Ethereum], batay sa aking pag-unawa sa kasalukuyang estado ng [Ethereum], ang Ethereum network at ang desentralisadong istruktura nito, kasalukuyang mga alok at benta ng [Ethereum] ay hindi mga transaksyon sa seguridad,” Hinman sabi. This historical stance by the SEC forms a cornerstone of the argument against its current reclassification efforts. The SEC has not formally retracted this position, leading to a strong presumption favoring Ethereums current non-security status. “Based on Director Hinmans point in 2018, there is no difference between now and 2018. Today, in terms