News Ethereum Classic: Is The SEC Watching?

Ethereum Classic: Is The SEC Watching?


- Advertisment -

The currency community is tight-knit and passionate, that’s one thing we can all agree on. Shortly after this morning’s piece went up regarding my concerns about Barry Silbert promoting Ethereum Classic, a number of you brought some information to the fore that I was unaware of.

Barry Silbert, founder and CEO of the Digital Currency Group and creator of the Bitcoin Investment Trust, has already faced S.E.C. action over a strikingly similar event that involved the promotion of so-called “BIT Shares.”

Although some sources believe a less connected man would have done jail time, Silbert’s firm managed to extricate itself from the fiasco with only a disgorgement and a cease-and-desist order from the Commission. You can read the full case law here. Although there are several interesting parts, this one is most relevant, found on page 3:


It is troubling to some in the community that Silbert attempted to divert enthusiasm for Bitcoin, the popular intermediate commodity money mined by computers the world over, into excitement for the “BIT” – which had redemption restrictions and other issues.

Some feel Silbert is orchestrating a classic “Pump and Dump” by using his name and connections to legitimize the trading of a failed orphan chain as a viable alternative to Ethereum, and there are concerns that since Silbert’s group has already attracted S.E.C. scrutiny in the past, if he were to dump his Ethereum Classic tokens at any time, it could trigger unwanted additional scrutiny and regulation for the larger cryptocurrency industry.

Now is Ethereum itself a legal asset? Within the highly regulated State of New York, Governor Cuomo himself has stated that some exchanges operating in New York are authorized by the NY State Department of Financial Services (NYDFS) to trade in Ether:

Where does this leave Ethereum Classic? Cryptocurrency is still an unregulated market, but it’s likely that if things don’t end well for Classic token holders, the S.E.C. or other regulators may have more to say about cryptocurrency – and at least for some in the community, attracting regulators’ ire is far from ideal.

If Mr. Silbert was so “philosophically” enchanted by whatever it is he sees in Ethereum’s orphan chain, some industry watchers feel he should have kept it to himself, rather than pumping it from his personal Twitter account:

Ethereum Classic: Is The SEC Watching?

You can read our earlier story on Ethereum Classic and Mr. Silbert here.

Full disclosure: At time of publication, I hold some bitcoin and ether as I research and use both technologies frequently.

Source link


Please enter your comment!
Please enter your name here

Latest news

Top 8 Potential Cryptocurrency Business Ideas for 2021

Which word comes into your mind when you hear or think of the word ‘cryptocurrency’? It might...

3 Important Reasons to Have AML for Cryptocurrency Business

In this article we are going to examine the 3 most important reasons to Have AML for...

Use of Smart Cards in Blockchain App Development

Ever since blockchain technology made a major breakthrough all over the globe, experts and forecasters have been...

IMF: Risk of substitution of domestic money by central banks’ digital currencies

Central banks around the world began looking closely at the issuance of their own digital currencies, known...
- Advertisement -

Ripple: The cryptocurrency that will ‘change’ the world in 2020

Ripple could say he's a child of Bitcoin: In December 2017 Bitcoin hit a record price in...

Spain approves Crypto Holdings disclosure bill from cryptocurrency holders

Spain approves Crypto Holdings disclosure bill from cryptocurrency holders. Spain's government has reportedly approved...

Must read

- Advertisement -

Read Next
Recommended to you