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:
Read more on Rostin Behnam’s statements below: