Ethereum is not a Security: US SEC Chairman Jay Clayton

The US Securities and Exchange Commission (SEC), the country’s premier securities regulation body, has finally given Ethereum a clean chit. Chairman Jay Clayton, in a letter, has confirmed that Ethereum (ETH) is not a security under US laws.

Last year, there was a lot of speculation around Ethereum’s classification as a security. One of its officials, William Hinman, had even stated publicly in June last year that Ethereum is not a security. However, Clayton’s letter will be the final word on a subject that has kept the cryptocurrency market guessing for too long!

Interestingly, Clayton also confirmed that any digital asset’s classification as a security is not static and can change over time.

Despite a positive verdict for Ethereum, the market did not react to the news as the price of ETH largely stayed steady over the course of the last 24 hours. Going forth, it will be interesting to see the verdict on the more popular ERC-20 tokens. The SEC has been on a clean-up act of sorts, and has been going after token issuers and exchanges, which are allegedly in violation of securities laws in the US.