According to JPMorgan strategists, US lawmakers may classify Ethereum in a new category to avoid classification as a security and to protect investors.
JPMorgan strategists led by Nikolaos Panigirtzoglou said in a report shared on June 15: “To avoid defining Ethereum as a security, it is possible to create a new category specific to ETH and other cryptocurrencies.” According to strategists, this category would include more restrictions and investor protection than envisioned for commodities, while less demanding than the criteria required for securities.
Hinman Says Ethereum Is Not a Securities
This report, shared by JPMorgan strategists, came to the fore after the Hinman documents published in the ongoing lawsuit between the SEC and Ripple.
The Hinman documents included some speeches by Bill Hinman, the SEC’s director of corporate finance. In his speech, Hinman mentioned that Ethereum is not a security because it is a decentralized blockchain network enough. Published documents showed that at the time, some SEC officials expressed concerns about the mention of Ethereum in their comments to the draft talk.
SEC Chairman Gary Gensler, who recently testified before the House Financial Services Committee, declined to specify whether Ethereum would be considered a security during the five-hour session. Gensler told New York Magazine in February that everything other than Bitcoin is a security.
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