As the looming crypto regulations by governments nears, players in the digital currency scene are anxious about the SEC’s decision on some of their favorite coins’ status.

Comments from Dugan Bliss, the agency’s senior trial counsel, added to this anxiety. In a conference with Magistrate Judge Sarah Network, Bliss declared that SEC is still indecisive on ruling out leading cryptocurrency Bitcoin and Ethereum’s security status.

Could SEC Be Waiting Out on Ethereum Like It Did Ripple?

The U.S. financial watchdog declared Ripple an illegal unregistered security after the digital token had been in the industry for seven years. The track record means that the cryptocurrency’s position in the market is a non-factor to its decision. SEC could be coming for the two leading cryptocurrencies next.

Considering the former SEC chairman’s sentiments, leading cryptocurrency Bitcoin has a better chance of survival than Ethereum. Jay Clayton has, on more than one occasion, declared Bitcoin as a non-security. Ethereum, on the other hand, is floating on regulatory uncertainty and hence closer to SEC’s chopping board.

At the conference, Bliss continued to urge the public to disregard comments that alluded to Ethereum’s non-security status from “a high-ranking person.” SEC’s senior counsel was referring to the agency’s former director of finance, Bill Hinman. Before his exit from SEC in 2018, Hinman commented that Ether’s sales and offers were not security transactions.

Ad · MCP Partner The MEXC discount, negotiated for ParadisersSign up through our code and pay lower trading fees on 3,000+ pairs. Used by the ParadiseTeam. Claim the discount → Ad · MCP Partner Up to $5,100 in welcome rewards on BingXTheir current new-user offer — trade spot & futures, or copy top traders. ParadiseTeam recommended. Join BingX → Ad · MCP Partner Bitunix takes US traders. Most exchanges won’t.US acceptedCrypto futures with VIP code ParadiseFamilyVIP applied automatically at sign-up. Trade on Bitunix → Ad · MCP Partner KCEX built its name on one thing: the lowest feesUS accepted“The lowest crypto fees” is their own promise — welcome rewards for new accounts via our invite. Open KCEX account → Ad · MCP Partner Your keys, off the internet. Permanently.Ledger Stax — the cold wallet the ParadiseTeam uses for long-term storage. Shop Ledger Stax → Ad · MCP Partner An air-gapped vault that fits in your pocketSafePal S1 Pro signs 100% offline — nothing for hackers to reach. ParadiseTeam pick. Get SafePal S1 Pro → Ad · MCP Partner Security you can audit, not just trustTrezor Safe 7 — open-source hardware wallet with the TROPIC01 secure element. Get Trezor Safe 7 → Ad · MCP Partner Paper burns. Steel doesn’t.Trezor Keep Metal — your 24-word seed stamped in stainless steel. Fire- and water-resistant. Protect your seed →

Remove Ads

Bliss affirmed that Hinman’s comments were from a personal point of view. The U.S. financial watchdog had not officially drafted or sent any action letter to enforce Hinman’s view.

SEC’s Incoming Chairman Strongly Believes Ethereum to be a Non-Compliant Security

Crypto enthusiasts cannot tell SEC’s stands on passing comments of affiliates of the agency. While SEC’s former finance director stood for Ethereum’s non-security status, the incoming chairman Gary Gensler stands at the opposite side.

Speaking to New York Times, Gensler said Ethereum is similar to Ripple as non-compliant security. His comments are firmly against Ethereum. Nonetheless, Ether’s traders can hold onto SEC’s senior counsel’s advice to disregard personal views, which is what Gensler’s sentiments are.