According to JP Morgan, the US Congress should classify Ethereum in a new regulatory category. This proposal aims to offer less restrictive regulations, but with more restrictions and protections.
A specific category, according to JPMorgan
JPMorgan is a holding company well known in the cryptosphere. According to its strategists, two options are available to the US Congress:
- classify Ethereum (ETH) in the same category as bitcoin (BTC),
- put crypto into a new category with less restrictive regulations than those imposed on transferable securities.
“It is possible to specifically introduce a new another category for Ethereum and other sufficiently decentralized cryptocurrencies. The latter will then not be considered as transferable securities”, do we read in a note published on June 15.
” This other category would imply more restrictions and protections for investors than what is currently envisaged for commodities. However, they would be less onerous than those required for securities. »
The Influence of “Hinman Documents” on Ethereum Regulation
JP Morgan’s comments come after some details of Bill Hinman’s speech in 2018 were questioned. The speech clarified that Ethereum does not represent a security in any way. The reason given: the sufficient decentralization of the Ethereum blockchain network.
The recently released “Hinman documents” in the SEC/Ripple Labs case prove it. Some SEC officials had raised concerns about the mention of Ethereum in the speech. “If we no longer consider tokens on a sufficiently decentralized network as securities, we will create a regulatory vacuum”according to a comment.
The release of the Hinman documents could explain why the SEC is avoiding action against Ethereum. The American regulator instead targets most of the main competing cryptocurrencies. According to JP Morgan strategists, these documents could influence the current efforts of the US Congress to regulate the crypto market.
According to JP Morgan, the creation of a new specific category is emerging as the ideal solution for Ethereum. However, the opinions of the crypto community remain divided on this point. To be continued…Top of the formBottom of the form
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