Ethereum might be a security. So what?
By now you may have seen a lot of arguments from lawyers and specialist for Ethereum being a security and I’m not going to argue for or against that as I think it’s irrelevant.
Regulators are not making the decision for ETH being a security or not by analysing the law but instead by analysing the political-strategic implications and will then use the law and technicalities to justify the decision.
What I do want to focus on, in this article, is this apocalyptic scenario presented by both the press and the vast majority of crypto Youtubers. Their narrative is that If SEC sees ETH as a security all hell will break loose, the market will never recover, eth will never be the same. But no one bothers to give any type of reasons for this other than it’s “bad news”. Look, while a dip is likely to happen in such a scenario, mid and long term It DOESN’T matter if the SEC sees it as a security. And here are the reasons why:
Joe can:
-mine ETH,
-buy Bitcoin from one address change to Monero and then to ETH on another address.(just a stupid example, there are many, many other ways to do it).
So a regulation like this will have the same effect as a traffic commision saying that Elon Musk’s roadstar, that’s floating around the orbit, has to follow traffic laws or else…
A lot of Americans seem to think that SEC is somehow a globlal regulator, it’s not. I think it’s also important to note that the vast majority of Eth holders are not from USA.
People use their ETH to invest in projects on the ethereum blockchain and get more Eth. The harder it is to get the Eth the more valuable it will become in that specific region.
I personally also don’t see the logic behind a non accredited investor selling his ETH as soon as SEC sees it as a security.
So you have this asset that just became more exclusive and due to regulation other non accredited investors can`t buy it. Why would you sell it?
Ethereum true value does not come from what a particular government thinks about at one point in time but from the resistance the blockchain has against this.
Also point 1 (people can always acquire ETH risk free) is why I think SEC will never deem Ethereum as being a security. From a strategic position this is just wrong as it will expose the limits and irrelevancy of their regulatory decisions.
That being said the most likely thing to come out after the SEC-CFDC meeting is NOTHING new.
