• The US Securities and Exchange Commission (SEC) has requested the redaction of two documents that were related to a speech given by former SEC official Bill Hinman in June 2018.
• This speech classified Ethereum as not being a security, leading to speculation that its designation may be under review.
• Ethereum’s not-a-security classification is vital to its growth and adoption, making investors nervous over a possible change.
The cryptocurrency world is buzzing with speculation after the US Securities and Exchange Commission (SEC) filed a letter seeking to redact parts of a speech given by former SEC official Bill Hinman in June 2018. The speech classified Ethereum as not being a security, but the redacted sections reportedly discuss “pending determinations” before the commission, leading to rumors that the designation of Ethereum may be under review.
In response to the SEC’s April 11, 2022 order, which allowed them to “seek leave to redact” communications between staff that discussed how Hinman’s speech “implicates other, separate agency deliberations,” the SEC filed a letter on April 29, 2022, seeking approval to redact two documents that contained language the commission sought to keep confidential. The SEC has submitted the documents to the court for “in-camera review” as directed by the court’s July 12, 2022 order.
Potential Impact on Ethereum
Ethereum is the second-largest cryptocurrency after Bitcoin, with a market capitalization of over $200 billion. The designation of Ethereum as not being a security has been a crucial factor in its growth and adoption. The possibility that its status may be under review has raised concerns among investors, as it could potentially affect the value and legitimacy of Ethereum.
Mixed Reactions from Community
The Ethereum community has responded with a mix of concern and dismissal regarding the potential review of Ethereum’s designation. While some are worried about the impact this could have on their investments others are confident that it will be resolved without any significant changes being made.
It remains unclear what impact this news will have on Ethereum’s status or how long it will take for any decision or resolution from regulators or courts regarding this matter. Investors should remain vigilant while monitoring developments in this situation closely