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The reason he won't answer the question is because it's complicated.

On one hand, yes, Ethereum is obviously a security, it raised money from investors to make a thing, and investors expected to get rich off it.

On the other hand, Ethereum is currently regulated as a commodity by the CFTC.

If he says Ethereum is a security, then there's a political mess.

If he says Ethereum is a commodity, then it breaks down the SEC's case for all the crypto projects out there that's basically stock IPOs but with a thin crypto layer on top.

I would not impute his credentials, he was a partner at Goldman Sachs and was chair of CFTC under Obama. He was involved in crafting a great deal of policy after 08 around the new regulations for financial institutions. He's not stupid, he's clearly a better person for the job than most of the people here on HN.




How can crypto companies be expected to follow the law, if the head of the SEC cannot say if Ethereum is a security or a commodity?


Well, it's easy to follow the law. Just be conservative and treat Ethereum like an unregistered security. Ie, don't offer it for sale to the public.

That certainly isn't a good outcome for Coinbase, though, so I can see why the crypto companies wish the SEC had a different suggestion.


Laws the CEO doesn’t like are “unclear”. He doesn’t like any laws because they are intended to thwart grifters like him. So all regulation is unclear.




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