The US authorities seriously undertook the study of the second most popular and demanded cryptocurrency in the world – Ethereum. This has been reported by The Wall Street Journal.
Most likely, the study by powerful financial regulators – the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission) – is necessary to prove that Ethereum is a security, not a commodity, as the first largest cryptocurrency, Bitcoin. The meeting of regulators, which will deal with the regulation of the cryptocurrency, should be held today, on the 7th of May.
At the moment, experts are studying the price dynamics of Ethereum. This is necessary to predict what can happen to the cryptocurrency in case of official recognition in the US as a security.
If it is proved, then the negative changes are expected to happen to the cryptocurrency, as only the exchanges licensed by the SEC will be able to sell Ethereum, and while the license is being drawn up, any trades with this cryptocurrency will be suspended. The co-founder of Ethereum Joseph Lubin notes that the status of “security” of the cryptocurrency will leave many investors “out of the game”. Meanwhile, the head of CFTC Gary Gensler is sure that Ethereum and Ripple can not be securities, as they do not meet regulatory requirements.
However, according to the experts, there are not enough reasons for such a future for Ethereum.
Lubin said that Ethereum can not be regulated within the framework of the current law and that “..it is a way of accessing the distributed computer registry, so Ethereum actually needs at least some kind of regulation.”
We remind you that the Ethereum platform belongs to the Russian IT entrepreneur Vitalik Buterin, who is considered a key figure in the cryptocurrency world nowadays.