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The US will have to deal with the operation of another cryptocurrency
US financial regulators inaugurated the research of Ethereum, the second by market capitalization after bitcoin to the cryptocurrency, according to the Wall Street Journal.
The Securities Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will talk over whether Ethereum should be seen as a security. Regulators are interested in the sale of Eth tokens in 2014, which can be categorized as a sale of securities because investors plausibly purchase tokens in a hopeful attempt to see their price hedge up down the line.
If the cryptocurrency is seen as a security, the Ethereum Foundation will appeal to the court, the proceedings will last several years, according to Cointelegraph. A lawyer Dean Steinbeck believes that the SEC will not take last decision on Ethereum in the near future, and the CFTC will soon accept the currency as a commodity, as it was with bitcoin in 2015.
Recognition of cryptocurrency securities would put her course on the line. Exchanges trading in Ethereum will have to register with the SEC, freezing bidding for the duration of the license.
Co-founder of the Ethereum Foundation Joseph Lubin is assuring that this will not occur. He said that the fund embraced a huge number of consultations with lawyers on this issue. He also added that Ethereum is not included in the classification of securities, which is led by the SEC.
The operation of crypto-currency, in many nations, is not generally clarified by law, some states were able to ascertain the movement of bitcoin. So, Germany, in March 2018 pronounced that it a means of payment, in April 2017, it held the same status in Japan.
The EU Court in 2015 decided to equate bitcoin with traditional money.
However, the IRS in 2014 did not accept the usage of Bitcoin as a currency, calling it a property that is subject to suitable taxation, containing reselling abroad. The IRS strictly overlook the currency exchange and exchange exchanges, inspecting sites and users for feasible tax evasion. In February, the service through the court attained from a large exchanger Coinbase data shift about 13 thousand customers. Still, in spite of the platform and talents Coinbase and other exchanges offer, out of the blue errors happen and because of the volatility of the cryptocurrency market, investors often feel anxious and impatient with unanticipated situations.