Turns out Cryptocurrency lacks security in more than just its exchanges. Yesterday, during the Yahoo's crypto summit, SEC Official William Hinman said,
"We don't see a lot of value in seeing ether as a security," William Hinman, head of the Division of Corporate Finance for the SEC, said at the Yahoo All Markets Summit: Crypto conference in San Francisco. "Ether is a coin that is evolving."
This is a huge win for Ethereum investors everywhere, especially those who are involved in pump and dumps. The SEC has been looming over cryptocurrency for a while now and has brought uncertainty with it. It's the equivalent of that parent who came down the stairs at 11 P.M. during the slumber party in an attempt to quell a horde of children loaded up on Mountain Dew and Doritos. Inevitably, they will fail, begin to yell at the children and make the executive decision to sit at the bottom of the stairs until everyone has nodded off, or at least pretend that they had. Then once the kids have him fooled, the Mountain Dew flows like the Mississippi Delta after a hurricane. And just as the Delta flows after a hurricane, Ethereum made significant gains shortly after the announcement
The digital currency ether rose 8.8 percent to a high of $520.68, according to CoinDesk. Its price has struggled along with other cryptocurrencies this year, and has dropped about 35 percent since January.
All the trendy finance wannabes were probably feeling like kings after they got their ambivalent father to invest over Christmas break and the price hit $1400 in early January. Sadly, they told their Dad he needed to 'Hodl', and as far as he's concerned, he was willing to so long as you'd call him more than once a week. Now the phone calls are him asking for his money back, and instead of Warren Buffet, you're looking a lot like the alcoholic frat boy that you are after a new rally means the price eclipses $500.
And even as I write this the rally couldn't hold out and the price is back below $500 this morning.
Not every currency may be lucky enough to escape the wretched grip of the SEC like Ethereum
The agency will look at other cryptocurrencies on a case-by-case basis, Hinman said. Moving too quickly in search of a label could cause the agency to miss key facts and circumstances, which can vary dramatically depending on the cryptocurrency, he said.
"We don't think establishing a lot of bright lines is helpful," Hinman said. "We don't want to react too quickly, we do want to protect investors but not stifle innovation."
I assume this is the SEC's way of waiting for the whole crypto market to crash and burn, so they don't waste resources investigating made up internet money.
But at the end of the day, I was one of the dumbass college kids slinging cryptocurrency advice back in December, so I'm on the 'Hodl' train as well. Let's just hope it ends up working out.