Nikolaos Panigirtzoglou, Managing Director of JPMorgan, highlighted another altcoin network instead of Bitcoin when it comes to decentralization.
Nikolaos Panigirtzoglou directed those looking for decentralization to this altcoin instead of Bitcoin
The JPMorgan executive reviewed the Hinman documents that recently surfaced in the SEC-Ripple lawsuit. These documents contain what former SEC executive Willian Hinman had to say about Ethereum in 2018. Hinmann said that Ethereum was not a security on this date.
Panigirtzoglou believes that the release of the Hinman documents will affect crypto regulations. Hinman’s speeches were officially presented to the public on June 13, as we quoted as Kriptokoin.com. Panigirtzoglou says with the documents that have emerged, most altcoins should now “look more like Ethereum.”
According to Panigirtzoglou, the Hinman documents will affect how regulation will eventually be executed by the US Congress in such a way that “Ethereum is not defined as a security.” The JPMorgan executive writes about it:
The top leadership at the SEC did not believe Ethereum was a security in 2018… SEC officials had reservations about Hinman, including a direct statement about ETH in his speech, as ‘it would be difficult for the regulator to take a different position on ETH in the future’.
Ethereum dilemma
Panigirtzoglou emphasizes Hinman’s sentence that “if the network on which the token or cryptocurrency will operate is sufficiently decentralized, assets will not represent a security.” This sentence explains why the SEC is refraining from acting against Ethereum.
Panigirtzoglou explains that ETH can be put in the same category as Bitcoin to be regulated by the CFTC as a commodity. However, these “decentralized” assets “will involve more restrictions and investor protection than currently envisioned for commodities. But it can be put in another category, ‘less burdensome than those required for securities,’ he notes.
Panigirtzoglou stresses the importance of the Hinman documents, whatever is decided on the matter. He says it will be a catalyst to bring more decentralization into the crypto space. The JPMorgan executive explains why:
It will likely intensify the race between major cryptocurrencies and their respective blockchains to avoid being identified as securities, to make it more decentralized and look even more Ethereum-like.
Brad Garlinghouse criticizes overly oppressive regulators
Ripple CEO Brad Garlinghouse also recently criticized the SEC’s stance following the release of the Hinman documents. The SEC, headed by Gary Gensler, has been taking a tough stance against crypto in recent months. Garlinghouse said that despite this internal debate, the SEC “weapons a lack of regulatory clarity.” He also stated that he decided to accuse Ripple of running an unregistered securities offering.
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