The U.S. Congress could classify Ethereum (ETH) in the same commodities category as bitcoin (BTC) or reclassify it as an “other category” with less rigorous regulations than securities. According to a JPMorgan strategist
“It is possible that a new ‘other category’ may be introduced for Ethereum and other decentralized cryptocurrency cryptocurrencies. cryptocurrencies enough to avoid being designated a security,” said JPMorgan strategist Nikolaos Panigirzoglou. Written in the journal on Thursday.
The “other category” may involve more restrictions and investor protection than is currently expected for commodities. But there is less hassle required for securities.
JPMorgan’s comments came after US Securities and Exchange Commission (SEC) officials questioned key details of a 2018 speech that said ETH was not a security in a document released earlier this week. as part of a lawsuit against Ripple Labs by The SEC, where Bill Hinman was the director of the SEC’s corporate finance division, said ETH is not a security. “Decentralize power enough”
“The fact that tokens on a decentralized network are no longer securities” created a “regulatory gap,” said some SEC officials at the time.
The release of the “Hinman Document” may explain why the SEC has avoided dealing with ETH while attacking almost all of its major rival tokens this year. JPMorgan Strategist Says
“The Hinman Document is likely to influence the direction of current US Congressional efforts to regulate the crypto industry in such a way that Ethereum will avoid being designated a security,” they added.
Overall, the release of the document will benefit Ethereum, according to the strategist. But it doesn’t necessarily have direct implications for Ripple,” they said.
“If Ripple wins, that will have implications for current and future SEC enforcement. Since crypto entities were attacked by the SEC, it would similarly argue that it failed to give fair notice.”
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