SEC has not determined whether any specific cryptocurrency may be deemed a “security”

Recently, an XRP enthusiast reached out the U.S Securities and Exchanges Commission asking why the SEC has not made a determination about XRP after classifying Bitcoin [BTC] and Ethereum [ETH] as ‘non-security’.

In response to the query, Lisa Skrycki, an attorney of the Office of Investor Education and Advocacy U.S SEC, stated that the SEC has not concluded any of the cryptocurrency in the market as a security.

She said:

“As an initial matter, please be advised that notwithstanding any enforcement actions taken by the SEC, the SEC has not made a determination as to whether any specific cryptocurrency may be deemed a ‘security’ under the federal securities laws.”

The attorney further clarified the controversy regarding William Hineman, the Director of the SEC’s Division of Corporate Finance, statement about Ethereum [ETH] as a non-security. She said:

“As you may be aware, Director Hineman’s remarks inclued a disclaimer: The SEC disclaims responsibility for any private publication or statement of any SEC employee or commissioner. This speech expresses the author’s views and does not necessarily reflect those of the commission, the commissioners or other members of the staff.”

During the Yahoo Finance Markets Summit, Director Hineman spoke about his opinion on cryptocurrency mainly about Bitcoin [BTC] and Ethereum [ETH]. He said that “applying the disclosure regime” of the federal securities law, Bitcoin seems to add little value in terms of offer and resale of the coin.

He continued to say that based on his understanding of Ethereum, its network and decentralized structure, and the purchase and sale of the coin at present are not securities transactions.

The statement made by the Director led to a huge buzz in the cryptocurrency space. This also had an impact on the value of the cryptocurrencies followed by a lot of controversies.

However, as stated above, the statement does not represent the SEC but was just an opinion of a member from the SEC and does not represent the commission.

Rog1, in a statement to AMBCrypto:

“I think that everybody was made to believe through media and CNBC that BTC and Ethereum are not securities because of one or two people in the SEC said their OPINIONS but the SEC has NEVER made a statement stating that.”

He further stated:

“I want to make clear that I got this email from the person who posted it and even though that was posted it didn’t get much traction. So I am trying to put the truth out there.”

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