MicroStrategy’s Michael Saylor Says Ethereum Is “Obviously” a Security

MicroStrategy’s Chief Executive and renowned Bitcoin bull Michael Saylor has labeled Ether (ETH), the native token of the leading smart contract platform Ethereum, a security.

Ethereum Is a Security

In an interview with Altcoin Daily, MicroStrategy CEO Michael Saylor remarked that Ethereum (ETH) is a security. Saylor went on to double down by agreeing with the claims made by SEC chief Gary Gensler that Bitcoin is the only crypto that fits the description of being a commodity.

Elaborating on his claims about Ether, Saylor had this to say: “I think it’s pretty obvious it’s a security. It was issued via an ICO [initial coin launch]. There’s a management team. There was a pre-mine.”

The MicroStrategy chief added that the consistent implementation of hard forks, including the network’s upcoming merge, only serves to solidify Ethereum’s status as a security, not a commodity.

Saylor expounded on his claims, explaining his view that the difficulty bomb, which Ethereum performs once every six months, further indicates that ETH is a security and not a commodity.

What Makes a Commodity?

Saylor believes that for a crypto to be labeled a commodity, there cannot be a dedicated issuer for its tokens. The CEO therefore believes that any crypto that has to undergo a hard fork to alter its protocol or issuance pattern must be considered a security.

On the Flipside

  • Rostin Benham, the chairperson of the Commodity Futures Trading Commission (CFTC), believes that Ethereum can in fact be categorized as a commodity.

Why You Should Care

In line with Saylor’s claims, most cryptocurrencies would need to be regulated as they currently issue non-compliant security tokens.

Find out why Gensler labelled bitcoin a commodity:

SEC Chief Gary Gensler Labels Bitcoin a Commodity, but Other Cryptos Securities

Read more on Rostin Behnam’s statements below:

CFTC Chairman Considers Bitcoin and Ethereum to be Commodities

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia