Coin Center, a nonprofit research and advocacy center focused on the public policy issues facing cryptocurrency, has recently contradicted the New York Attorney General’s argument that Ethereum is a security. The New York Attorney General’s office had previously issued a report claiming that Ethereum was a security, and that the Ethereum Foundation had violated securities laws by offering it without registering it with the Securities and Exchange Commission (SEC).
Coin Center’s executive director, Jerry Brito, argued that the New York Attorney General’s office was wrong in its assessment of Ethereum. He argued that Ethereum is not a security because it does not meet the Howey Test, which is used to determine whether or not an asset is a security. The Howey Test requires that an asset must be an investment of money in a common enterprise with an expectation of profits from the efforts of others. Brito argued that Ethereum does not meet this criteria because it is not an investment of money and there is no expectation of profits from the efforts of others.
Brito also argued that the New York Attorney General’s office was wrong in its assessment of the Ethereum Foundation. He argued that the Ethereum Foundation is not an issuer of securities, as it does not offer or sell any securities. He also argued that the Ethereum Foundation does not need to register with the SEC because it does not offer or sell securities.
Coin Center’s stance on Ethereum is in line with the SEC’s stance on cryptocurrencies. The SEC has stated that cryptocurrencies are not securities and that they do not need to be registered with the SEC. This is in contrast to the New York Attorney General’s office, which has taken a more restrictive stance on cryptocurrencies.
Coin Center’s stance on Ethereum is important because it provides clarity on the legal status of Ethereum and other cryptocurrencies. It also shows that there is disagreement between different government agencies on how cryptocurrencies should be regulated. This disagreement could lead to further regulatory uncertainty in the future, which could have a negative impact on the cryptocurrency industry.
