After a week in the red, the main cryptocurrencies turned green, bringing a huge sigh of relief to many crypto owners. What caused the turnaround: an announcement by the U.S. Securities and Exchange Commission (SEC) that it doesn’t consider Ethereum to be a security.
The announcement in the WSJ revealed that William Hinman, SEC Corporation Finance Director said: “Based on my understanding of the present state of ether, the Ethereum network and its decentralized structure, current offers and sales of ether are not securities transactions.”
Hinman argued that Ethereum is now sufficiently decentralised to disqualify it from a securities classification and this appears to indicate that the altcoin will be given the all clear and not be subjected to heavy regulation by the SEC. Hence the improvement in the value of ETH today.
It also appears to have had a domino effect on the rest of the cryptocurrencies, with gains of over 10 percent for some coins, according to Coinmarketcap. Bitcoin is up around 5.89 percent in the 24-hour period and trading volume reached $5.1 billion, which is a decided upturn on from a weekly low of $3.8 billion.
Ethereum rose by 10% following the SEC announcement. This follows several tense months during which it was not known whether the SEC would consider Ethereum as ‘non-compliant’ following its failure to register its ICO with the SEC in 2014. Another SEC spokesperson has also said that Bitcoin is not a security either, because “it acts as a replacement for sovereign currencies.”
Among the Top 10 cryptocurrencies, EOS showed the biggest improvement in the last 24 hours, rising by 13% and the total market capitalization for all cryptocurrencies is around $290 billion today, a significant upturn from its intra-weekly low of $271 billion.