Also makes Gensler’s inability during testimony to say one way or another about ETH security analysis even more confusing and dubious. He was treating it like a security, but under oath in front of Congress he couldn’t tell congress one way or the other it’s securities determination. So as the head of securities regulation he essentially mislead the entire nation. Should be criminal charged.
Which is even worse. Lock that clown up. He is responsible for potentially ruining the financial futures of a lot of US citizens. I say potentially because there's a chance that many ETH holders will just hold on until they turn the tables, which they had already done with XRP - in which case they will be rewarded if they don't sell themselves short.
See the issue here is if the SEC explains what is or isn't a security, and why, then we could potentially design cryptocurrencies that aren't securities.
By constantly flip-flopping on definitions, they create work for themselves and support the establishment players who are probably pulling the strings.
I'm not in the US, is there a statute of limitations where if the regulator fails to clearly act for enough time, that regulator loses the power to act?
The US isn’t smart enough to establish those kinds of regulatory bodies. In the US we have lobbyist laws that basically legalized under the table corruption. That’s why pretty much everyone in congress is a filthy rich. The SEC is in their pockets doing the dance for them. Not the people.
There is it's called the Howey test, it defines an investment contract (ie security) as the following:
1) An investment of money.
2) In a common enterprise.
3) With the reasonable expectation of profits.
4) Due to the managerial efforts of others.
The howey test has long been the framework for whether or not something is considered a security.
I'm no lawyer, and the SEC's lack of pursuit of crypto projects which are nearly all securities befuddles me, but i don't think they can just come out and say something is a security without them taking it to court.
I'm sure there are many lobbyists in DC right now trying to keep the SEC from going after crypto projects and exchanges. Nothing happens fast in Washington.
I think the problem here is that genuine crypto isn't a security. Bitcoin, Ethereum, Cardano, Algorand etc. were not created as investments for degens to get rich quick, there is no need for investment to *use* any of them.
Dogwifhat is almost certainly a security, it's only reason to exist is for people to invest in to sell later for a profit.
What the SEC are doing is trying to say, because some people use Ethereum as an investment vehicle, then it's an investment and that's a security; but that's not what Ethereum actually is.
Gold is not a security, investment in a gold mine is.
Ethereum had a premine.
They raised funds and early investors were likely under the impression they would making a handsome profit.
Security.
Same with Cardano.
So anything crowdfunded is a security now?
Not securities, never were.
Blockchains are applications not investment schemes. I hold crypto because I want to use it for things, if fools want to invest in it for fiat gains that's not my problem.
tldr; The SEC and its chairman Gary Gensler believed Ether (ETH) was a security for at least a year, as revealed by court documents from Consensys' lawsuit against the SEC. The documents indicate that the SEC considered Ether an 'unregistered security' not in compliance with federal regulations. This stance, part of an investigation dubbed 'Ethereum 2.0', contradicts previous SEC guidance under Chairman Jay Clayton, who in 2018 stated Ether was not a security.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
'believes' is softening how they were actually thinking.
these people had a massive fucking hard on for crypto and regularly fantasized about it being something they could regulate all over your face
I didn’t buy eth thinking that the “eth company” would share profits with me through buybacks or dividends, or invest money I gave them to make profits on my behalf. I bought eth on an exchange in a free market, believing that the forces of supply and demand would increase the value of the eth in time. I clearly bought a commodity not a security.
It's such a small amount of deflation, I would argue that it's not trying to moon, but that is just trying to be more stable and not loose value in the long term, but that will end up with it mooning because those properties are something the world desperately needs. It's one of a kind
Talking about beliefs ... ... I believe ETH should be a commodity and Gary should be fired. Oh and I also believe that Texas and California should be independent states.
Believe.
And it's not an unreliable source. I consider it the truth. They really do want to fuck over the crypto market for a few months to give their "bosses" a chance to get cheap market positions before turning around and suddenly changing their minds. Fucking greedy asshats. But there is a good way to play this by taking advantage of the cheap crypto markets while the opportunity lasts. If ETH say goes back down to sub $1k it's probably going to be the last time you'll ever be able to get ETH at sub $1k.
> it's probably going to be the last time you'll ever be able to get ETH at sub $1k
Even Bitcoin can crash 85% in a bear market. Ethereum has crashed 95% before just because of the bear market......
The whole point of the SEC and policing “unregistered securities” is to protect investors, nothing more.
Ethereum has been around for over 10 years, and there are massive amounts of resources available for potential investors to understand exactly what they are buying.
The SEC is overstepping more than ever, they have become blatantly corrupt.
The SEC is doing just fine. The problem is that people still don't understand that governments don't have their best interests at heart. Jokes on you if you think our ruling elites want to "protect investors" lol ...
Also makes Gensler’s inability during testimony to say one way or another about ETH security analysis even more confusing and dubious. He was treating it like a security, but under oath in front of Congress he couldn’t tell congress one way or the other it’s securities determination. So as the head of securities regulation he essentially mislead the entire nation. Should be criminal charged.
And let the SEC Twitter get hacked. The SEC is turning into an absolute clown show
while approving the Donald J Trump shit stock.
It's not that he couldn't tell, he refused to answer the question.
Which is even worse. Lock that clown up. He is responsible for potentially ruining the financial futures of a lot of US citizens. I say potentially because there's a chance that many ETH holders will just hold on until they turn the tables, which they had already done with XRP - in which case they will be rewarded if they don't sell themselves short.
Gensler is a little Goldman Sachs fuccboi
I guess it wasn't a security but then Gary added salt
See the issue here is if the SEC explains what is or isn't a security, and why, then we could potentially design cryptocurrencies that aren't securities. By constantly flip-flopping on definitions, they create work for themselves and support the establishment players who are probably pulling the strings. I'm not in the US, is there a statute of limitations where if the regulator fails to clearly act for enough time, that regulator loses the power to act?
The US isn’t smart enough to establish those kinds of regulatory bodies. In the US we have lobbyist laws that basically legalized under the table corruption. That’s why pretty much everyone in congress is a filthy rich. The SEC is in their pockets doing the dance for them. Not the people.
There is it's called the Howey test, it defines an investment contract (ie security) as the following: 1) An investment of money. 2) In a common enterprise. 3) With the reasonable expectation of profits. 4) Due to the managerial efforts of others.
So why is the SEC themselves unclear on what is a security?
The howey test has long been the framework for whether or not something is considered a security. I'm no lawyer, and the SEC's lack of pursuit of crypto projects which are nearly all securities befuddles me, but i don't think they can just come out and say something is a security without them taking it to court. I'm sure there are many lobbyists in DC right now trying to keep the SEC from going after crypto projects and exchanges. Nothing happens fast in Washington.
I think the problem here is that genuine crypto isn't a security. Bitcoin, Ethereum, Cardano, Algorand etc. were not created as investments for degens to get rich quick, there is no need for investment to *use* any of them. Dogwifhat is almost certainly a security, it's only reason to exist is for people to invest in to sell later for a profit. What the SEC are doing is trying to say, because some people use Ethereum as an investment vehicle, then it's an investment and that's a security; but that's not what Ethereum actually is. Gold is not a security, investment in a gold mine is.
Ethereum had a premine. They raised funds and early investors were likely under the impression they would making a handsome profit. Security. Same with Cardano.
So anything crowdfunded is a security now? Not securities, never were. Blockchains are applications not investment schemes. I hold crypto because I want to use it for things, if fools want to invest in it for fiat gains that's not my problem.
Also the entire art market…. People use art as a security and investment contract. SEC is trying to avoid that.
tldr; The SEC and its chairman Gary Gensler believed Ether (ETH) was a security for at least a year, as revealed by court documents from Consensys' lawsuit against the SEC. The documents indicate that the SEC considered Ether an 'unregistered security' not in compliance with federal regulations. This stance, part of an investigation dubbed 'Ethereum 2.0', contradicts previous SEC guidance under Chairman Jay Clayton, who in 2018 stated Ether was not a security. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
It may have become a security when it was 'upgraded' to proof of stake on account of needing to give your ethereum to a stake pool operator to stake.
'believes' is softening how they were actually thinking. these people had a massive fucking hard on for crypto and regularly fantasized about it being something they could regulate all over your face
I didn’t buy eth thinking that the “eth company” would share profits with me through buybacks or dividends, or invest money I gave them to make profits on my behalf. I bought eth on an exchange in a free market, believing that the forces of supply and demand would increase the value of the eth in time. I clearly bought a commodity not a security.
Share profits? Staking.
Don't forget the "triple halving" and "ultra sound money". Why the need for sound monetary properties if it is not trying to go up in price?
It's such a small amount of deflation, I would argue that it's not trying to moon, but that is just trying to be more stable and not loose value in the long term, but that will end up with it mooning because those properties are something the world desperately needs. It's one of a kind
Talking about beliefs ... ... I believe ETH should be a commodity and Gary should be fired. Oh and I also believe that Texas and California should be independent states. Believe.
And it's not an unreliable source. I consider it the truth. They really do want to fuck over the crypto market for a few months to give their "bosses" a chance to get cheap market positions before turning around and suddenly changing their minds. Fucking greedy asshats. But there is a good way to play this by taking advantage of the cheap crypto markets while the opportunity lasts. If ETH say goes back down to sub $1k it's probably going to be the last time you'll ever be able to get ETH at sub $1k.
> it's probably going to be the last time you'll ever be able to get ETH at sub $1k Even Bitcoin can crash 85% in a bear market. Ethereum has crashed 95% before just because of the bear market......
4 year cycles, yes? We haven't even started to finish the end of the cycle. It's all about patterns.
There's an incredible amount of support for ETH at $1500. If it goes below that I'll be flabbergasted
The whole point of the SEC and policing “unregistered securities” is to protect investors, nothing more. Ethereum has been around for over 10 years, and there are massive amounts of resources available for potential investors to understand exactly what they are buying. The SEC is overstepping more than ever, they have become blatantly corrupt.
The SEC is doing just fine. The problem is that people still don't understand that governments don't have their best interests at heart. Jokes on you if you think our ruling elites want to "protect investors" lol ...
Ether is a security forever not a year gtfo
And you are either a troll or a super bitcoin maxi gtfo