ARTICLE
19 June 2018

SEC Declares Ether Is Not A Security

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Sheppard, Mullin, Richter & Hampton LLP

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The SEC has formally announced that Ether is not a security.
United States Corporate/Commercial Law
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The SEC has formally announced that Ether is not a security. The U.S. Securities and Exchange Commission Director of Corporate Finance William Hinman said that the commission would not be classifying ether or bitcoin as securities. Other comments of note include that if a cryptocurrency network is sufficiently decentralized and purchasers no longer have expectation of managerial stewardship from a third party, a coin is not a security. Also, labeling an investment opportunity as a "coin" or a "token" does not make something not a security. The facts and circumstances matter.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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