The recent move by US regulators towards the cryptocurrency market has sparked securities debates over coins like Dogecoin and Ethereum. Lead actor Gary Gensler argues that all cryptos other than Bitcoin should have this status. So is this really the case?
Is Dogecoin a security? According to Metallicus CEO, the answer is obvious
Marshall Hayner, Metallicus CEO and Dogecoin Foundation Board Member, dismissed the notion that Dogecoin could be classified as a security in a recent interview with Fox Business correspondent Eleanor Terrett.
According to Hayner, a security is typically a financial product with future earnings prospects and a central entity behind it. The expert points out that none of these features apply to Dogecoin (DOGE).
Hayner explained that Dogecoin founders Jackson Palmer and Billy Markus did not use the project to amass significant wealth, unlike some other cryptocurrency founders. He also believes that since Dogecoin was not taken seriously in its early days, no one tried to take control of it, leading to its uniquely decentralized nature.
Comparing Dogecoin with Bitcoin, Hayner emphasized that Dogecoin is a version of Bitcoin and if Bitcoin is not considered a security, Dogecoin should not be either. So how is the situation for Ethereum?
The question of whether Ethereum (ETH) is a security is about to answer.
Elsewhere, former SEC Chairman Jay Clayton, who was a guest on CNBC, offered his perspective on the ongoing debate over whether Ethereum (ETH) should be considered a security.
Clayton sued Ripple while he was CEO, alleging that the company engaged in an unauthorized securities offering. In the interview, Clayton talked about how European regulators are handling cryptocurrencies and highlighted how open-minded they are in integrating the technology into the regulatory framework.
Clayton also agrees with the current chairman of the SEC, Gary Gensler, that a significant portion of cryptocurrencies will qualify as securities. When asked about Ethereum’s possible position as an unregistered investment, he compared it to a Broadway play. He suggested that the game’s initial production investments could be considered securities if the possibility of future ticket profits accompanies them.
However, if the game is successful and the tickets are sold at the box office, they cease to be securities and become tickets only. Clayton used this logic to argue that Ethereum was more like a “ticket” than a way to raise money, but admitted that he was unaware of all the details.
Conclusion
The issue of Ethereum’s regulatory status is still up for debate. Gensler has repeatedly suggested that all Proof-of-Stake (PoS) coins are securities, while avoiding investigations into the second-largest cryptocurrency. cryptocoin.com In this article, we have included the last statements he made before the Financial Services Committee of the US House of Representatives.
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