CBOE Says SEC Decision, "Clears Way" For Ether Futures

Update: Following the speech by The SEC's William Hinman earlier today, Cboe Global Markets  President Chris Concannon confirmed in a statement that:

"We are pleased with the SEC's decision to provide clarity with respect to current Ether transactions.

This announcement clears a key stumbling block for Ether futures, the case for which we've been considering since we launched the first Bitcoin futures in December 2017."

Crypto prices are holding their gains for now...

*  *  *

While somewhat expected, a top official at the SEC has seemingly confirmed that Ethereum trades are not subject to federal securities laws.

“Based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions,” William Hinman, who leads the SEC’s corporation finance unit, said in a Thursday speech in San Francisco.

Hinman added that "applying securities laws to Ether adds little value." Watch  him make the declaration below:

Previously, SEC Chairman Jay Clayton had said that cryptocurrencies like bitcoin are not securities, though the agency had not definitively named any other coins that would be deemed currencies and not securities.

And while the results of this off the cuff statement are unclear from the taxation or regulatory perspective, Ether is rallying on the news...

During CNBC's reporting on this speech they said that Hinman said "if there is a centralized third party, along with purchasers with an expectation of a return, than it is likely a security... The key here of course being that Ether is decentralized."

This would suggest that Bitcoin also is NOT a security given its decentralize nature.

“Can a digital asset originally sold in a securities offering eventually be sold in something other than a security?” he asked. “How about cases when there’s no longer a company [involved]? I believe in those cases answer is a qualified yes.”

Hinman said “form is disregarded for substance,” in the SEC’s thinking. The economic realities, he said, are more important than how something is labeled.

If a cryptocurrency network is sufficiently decentralized and purchasers no longer have expectation of managerial stewardship from a third party, a coin is not a security, Hinman added.

Similarly, labeling an investment opportunity as a “coin” or a “token” does not make something not a security, Hinman added.

As Yahoo reports, the commission’s policy is in line with what SEC Chair Jay Clayton said recently about bitcoin: that cryptocurrencies are not securities and the definition of “security” would not change to include bitcoin. (Clayton said digital tokens were securities, but cryptocurrencies were not.) Hinman’s announcement marks the official position of the SEC: the name isn’t important, but the way in which it’s sold, promised, and behaves is the key deciding factor.

Watch the Yahoo crypto market summit below:

Comments

Coinista davatankool Thu, 06/14/2018 - 13:20 Permalink

HA!  Jealous loser anti-science no-coiners...

Just yesterday you were celebrating "the demise" of cryptocurrency from your death-beds in your leaky roved hovels via your dial-up Internet connections while us Bitcoin geniuses continued to jet around the world, setting up shop in Puerto Rico where the fresh, hot, women roam.  You still have  a chance to repent and change your jealous loser anti-science no-coiner ways and

BUY BITCOIN!!!  Losers.

In reply to by davatankool

Liquid_Silver Quantify Thu, 06/14/2018 - 15:06 Permalink

In order to build dapps on the ETH network, the companies need to own ETH which convert to gas to execute smart contract to run the dapps. Do some research first before blah blah blah BS you know nothing about.  Go check out how many billion dollar corporations already signed on the Ethereum Enterprise Alliance to build dapps since last year. 

In reply to by Quantify

Turin Turambar Quantify Thu, 06/14/2018 - 15:08 Permalink

It's okay to have an opinion, but when you're completely ignorant about a subject like cryptos and blockchain tech, you would do yourself a favor by not displaying your ignorance in public.

Just because all cryptoCURRENCIES are blockchain tech does not mean that all blockchain tech is a cryptocurrency.  ETH happens to be a platform/network.  Think of it like an operating system on the internet like windows or Apple OS.  It's value is derived from the utility and volume of the programs (tokens) that run on it, and if you had a clue about Metcalfe's Law then maybe you wouldn't spout such senseless drivel.  SMH

In reply to by Quantify

NiggaPleeze Turin Turambar Thu, 06/14/2018 - 19:29 Permalink

It's okay to have an opinion, but when you're completely ignorant about a subject like cryptos and blockchain tech, you would do yourself a favor by not displaying your ignorance in public.

You should listen to yourself.

ETH happens to be a platform/network.  Think of it like an operating system on the internet like windows or Apple OS.

Clearly you have no idea what is an operating system, or what is Ethereum, or what either of them is.  Ehtereum is a distributed computing platform, and an extremely inefficient one at that.  To think of the inefficiency, keep in mind that every single node has to execute every single "DAPP" (one of the many things I hate about Ethereum is used of shit marketing garbage like "dAPP" and "smart contracts", puke!).  Imagine how fast your smartphone would be if every single person using a smartphone was using your smartphone (yes the Ethereum nodes are faster than smartphones, but not by much - maybe an order of magnitude, not the 5-7 orders or magnitude you'd need if the platform is actually used by everyone).  I.e., if Ethereum gains any traction at all, it will quickly be unable to process and will die - i.e. it is guaranteed not to succeed.  But, there is of course a limiting factor of how much will be computed to use these nodes - you have to pay to use them.  And, indeed, you will have to pay for every single node in the network to use them - currently 25,000 nodes.  So if you want to pay a tremendous sum of money to have a computer add two plus two for you, Ethereum is they way to go (but upon consultation I can come up with a faster but equally expensive way to add two and two).

And this is all by design, not error.

In reply to by Turin Turambar

SomeBrokersHav… Hammer of Light Thu, 06/14/2018 - 15:22 Permalink

 

If i want to legitimately speculate in a worldwide marketplace where the common currency is crypto..and i can earn a return in crypto, its no different than operating in a foreign country and its respective currency.  what do i care who sees what i do, its traceable as it is now.... public info is one thing, traceable is another....if i havr faith in that "counries" ethos, then i will choose yo do business there...if u tell me there is a country i can do business in that is not as susceptible to human deceit and breach of trust, then i would prob want to do business there, just saying....

In reply to by Hammer of Light

Harry Lightning Liquid_Silver Thu, 06/14/2018 - 15:16 Permalink

If you're an Ether holder, you just got boned up the Hershey Highway. Remember what happened to Bitcoin when they strted trading Bitcoin futures ? It provided an avenue for short sellers to enter the market, exponentially increasing the sell side of the entire Bitcoin cash and derivatives market. Once they start trading Ether futures, the same thing will happen and Ether will do the Deep Six Dive.

These government agencies are most likely not benign objective agents in this crypto-currency business. They are an arm of a government that does not want competition to its currency. Which means that anytime they get a chance to bring harm to the crypto-currencies they will. 

Now this in no way spells the death knell for crypto-currencies. What it means is that there will be a new obstacle, and a mighty severe one at that, to crypto-currency to gain the near universal acceptance that it will need to become a financial instrument that can compete with existing currencies. That does not mean it can't be done, only that it will be much more difficult and take a lot longer time period. And that added uncertainty along with the extension of timne reduces the present value and price of crypto-currencies. 

Crypto-currencies already were a market that was over-valued to an extreme, and as a result the prices tumbled as progressively more investors came to realize it. Now there will be an even greater realization of how far crypto-currency is to being accepted for the barter transactions for which money serves as a medium of exchange. As that refined realization spreads, it will manifest in sharply lower prices for quite a long time to come.

In reply to by Liquid_Silver

chubbyjjfong Harry Lightning Thu, 06/14/2018 - 15:40 Permalink

Umm, as I recall, after the futures announcement for bitcoin, did it not go parabolic towards 20k? All these arguments you put forward are exactly the same as those put forward about the internet. Lets have another chat in 5 years and see where we are at. Its pointless getting your titties in a tangle at this point in time. No one has a fucking clue whats going to happen, certainly not you or I. Its worth a punt if you have spare change, same as it ever was.

In reply to by Harry Lightning

Harry Lightning chubbyjjfong Thu, 06/14/2018 - 17:33 Permalink

When the futures trading contract at CME was approved, I wrote in this forum that the Bitcoin would be hit back down to 13,000 and maybe as low as 6,000 because of the new product. The Bitcoin was at 19,000 at the time, it already had gone parabolic before the announcement of a futures contract. 

You may not have a fucking clue but after 30 something years advising clients in all asset types, I do have a fucking clue. And my clue is based on the laws of economics which have been proven correct over hundreds of years. 

So believe in your fantasy of pending wealth, just like the poor souls who were convinced laetrile was going to save them. You may be right, but the price your paying for the dream now is totally void of reason.

In reply to by chubbyjjfong

Toxicosis Lore Thu, 06/14/2018 - 15:46 Permalink

Yes, ain't those facts a pesky thing.  The belief in priestly robes also extends to those chemists who cracked crude oil to give you gasoline for your car, and motor oil for the engine.  Damn scientifically oriented chemists!!

Isn't it a bitch when facts and actual observations get in the way of amateurs such as yourself with your denunciations of reality, when all you really need is a coloring book, puppies and the safe space in the corner room.

In reply to by Lore

NiggaPleeze Toxicosis Thu, 06/14/2018 - 19:34 Permalink

Either he edited his post or you are a total dufus dipshit, for scanning up a few lines from your attack is the text "rationalization by Man-Made Global Warming cultists".  Nowhere does it say every climate "scientist" (there are such things?) is such a cultist.  Now go pretend you understand something elsewhere.

In reply to by Toxicosis

Hammer of Light Coinista Thu, 06/14/2018 - 14:53 Permalink

Many of us NOT in your shill world of lies understand a material FACT about your BITCOIN -

 

It's not that I'm a "No-coiner"?

It's that I'm a USG NSA/CIA op = NO Bitcoiner

NOT A CHANCE IN HELL WILL I BUY THE CREATURE COIN hahaha!

Take your silly little squeal "no-coiner" (likely a CIA "creature word invention" to marginalize anyone not buying their filthy dirty little guild coin) take your word in your FEEBLE attempt to marginalize those of us who understand what we're looking at in your dark little recess sandwiched between your squat and potty . A FRAUD IS WHAT YOU CALL BITCOIN!

BITCOIN IS A FRAUD OF US AGENCY OPERATIONS -The most likely an enormous honey pot trap -

BITCOIN IS NOW FULLY BACK-DOORED INTO GOLDMAN SACHS ROTHSCHILD IRS BANKING AND YOUR KEYS ARE ALL RECORDED

Ever heard of key-stroking you laughable imbecile? Bluffdale Utah = NSA Quantum Operations = they got all of you already!

THERE IS NO ESCAPING THEM UNLESS YOU LEAVE THE US DIGITAL PLANTATION PERIOD.

Not no, but HELL NO will I buy this machination of vomitic lies. Not now, NOT EVER.

Btw people - BITCOIN IS A HONEY POT FOR IRS - DO NOT TAKE THIS BAIT FOR ANY REASON -

Take it from someone who's spent 30 years in the deep finance intel game - it's a honey pot trap and this is without question agency coin.

Look to other crypto's NOT run through US Agency and USG SPONSORED EXCHANGES. Keep your money OUT OF THE US AT ALL COSTS. Time is short, the real fleecing is about to begin. Bail-ins are coming. IRS COIN = BITCOIN + YOU = EASY PICKENS!

Hold Physical Gold and Silver and your storage should include a rifle, food / water storage, a map and a shovel.

Choke on that Coinista... who gave you that name btw, your section chief?

 

In reply to by Coinista

Hammer of Light tmosley Thu, 06/14/2018 - 15:03 Permalink

Yeah well, I'm dumb enough to catch and understand the obvious. "you so dumb" heeerrrrg herufmph herufmph - ME NOT SPEAKY DUMPHK -

Parody accounts? Hmmm interesting.... YAWN!

I need a cup of coffee so I can be a little more coherent in my next bitch slapping. I'm slacking a little today!

As for you... if you're truly a "coiner" wow, such a simpletons word, if you are such a "coiner" you may want to avoid the obvious honey pot traps yourself.

Some real asshole with his un-wiped ass IRS henchman are drooling over people like you... unless you're a part of their game.

Anyone can be found and exposed... even behind digital eyes.

In reply to by tmosley

westcott1 Coinista Thu, 06/14/2018 - 15:15 Permalink

The crypto boat has already sailed in my mind. If you got on the Bitcoin boat when it was under $100 or even up to  $2,000 you have something to celebrate, especially the former. In your case hot women.     

With Bitcoin priced at $6,000 and it rises to $12,000 big deal. The risk is not worth it at this point. 

In reply to by Coinista

Zip_the_Zap Coinista Thu, 06/14/2018 - 15:27 Permalink

Right on my friend. You cannot expect an atrophied brain refusing to accept a change in the exchange medium to understand what is going on. I wonder if they would have accepted gold when puka shells were on the way out? Then again who really cares about their myopic ignorance. They comment while we accumulate an appreciating asset.

In reply to by Coinista

AgainstYourThought WhosJohnGalt Thu, 06/14/2018 - 13:15 Permalink

Honestly, I believed that the SEC would declare Ethereum a security because 1) it was issued like a security during the pre-sale, 2) it easily passes the Howey test, and 3) Ethereum is totally centralized. Vitalik & other leads makes all the decisions including big decisions like coin cap, difficulty adjustment, and block reward. Not so with Bitcoin where those things are fixed and not easily changed by anyone.

 

Here's a good video making the case for why Ethereum is a security, at least during the launch/pre-sale. I was convinced by the arguments in the video, but it looks like they and I were wrong.

https://www.youtube.com/watch?v=wUUVlatCvp0

In reply to by WhosJohnGalt

WhosJohnGalt AgainstYourThought Thu, 06/14/2018 - 14:15 Permalink

You're full of shit dude and doing nothing but regurgitating the typical BTC maximalist talking points. "Muh centralization!".

Sorry (not really) to be the bearer of bad news, but that FUD just got destroyed today.

Read it and weep: https://twitter.com/nathanielpopper/status/1007300450884861952

And that's a direct quote from an SEC official.

So go ahead and keep crying those silent tears of FUD and denial into your pillow at night.

The cold hard reality is that BTC simply will not end up being "the chosen one".

As if it ever really had a chance. LOL /derp!

In reply to by AgainstYourThought

WhosJohnGalt AgainstYourThought Thu, 06/14/2018 - 14:30 Permalink

Again, you're full of shit trying to suggest that Vitalik "decides the inflation rate and supply cap." 

That is a provably false statement and nothing but desperate FUD.

You do indeed sound desperate.  If you fell for the FUD, and even worse started believing it yourself (which is sounds like you did/do), then you have nobody to thank but yourself.

Beyond that, continually repeating proven lies does nothing but make you look childish, foolish, and gullible, since you apparently fell for the FUD hook, line, and sinker.

Next time try applying some objective and critical thinking skills and don't let your emotions get the best of you, which is exactly what FUDsters and maximalists capitalize on.

I can't tell you how many people I know who missed the boat on millions, because like you, they fell for the horseshit lies.

Anyway, you don't even deserve this much of my time.  Get back out there and keep screaming those lies at the sky, it will do a lot of good...not.

In reply to by AgainstYourThought

AgainstYourThought WhosJohnGalt Thu, 06/14/2018 - 15:39 Permalink

It's an exaggeration to say one person makes all the decisions, but it's clear that Vitalik and his circle are the ones calling most of the shots. Here's a story about Vitalik and the new coin cap he wants to foist upon Ethereum. Not to mention the Proof-of-Stake nonsense that he's also foisting upon them.

https://www.newsbtc.com/2018/04/02/ethereum-founder-suggests-hard-cap-o…

Here's a very detailed article about why Ethereum won't scale

https://hackernoon.com/the-ethereum-blockchain-size-has-exceeded-1tb-an…

https://hackernoon.com/sharding-centralizes-ethereum-by-selling-you-sca…

But Ethereum's biggest problem is that it's totally useless. It markets itself as some sort of decentralized cloud computing system for "distributed applications" but the only distributed applications anyone is making are ERC20 shitcoins that do nothing and are used for nothing other than speculation. Despite their "Ethereum Enterprise Alliance" there is not one instance of Ethereum being used for "enterprise applications". And why would there be? Why would anyone build an application that needs to be powered by a token with a highly volatile, speculative value, that makes it impossible to budget?

I could go on and on about why Ethereum is a piece of shit, like how it's not immutable and the centralized leadership can just roll back the chain when they feel like it, e.g. DAO, but I won't. You get the idea.

and before you go accusing me of missing the boat, I bought Ethereum in Jan 2017, but sold in Jan 2018 (after 1 year for LT cap gains) after I realized Ethereum was an unworkable, nonsensical idea whose only application is creating worthless shitcoins

In reply to by WhosJohnGalt

AgainstYourThought AgainstYourThought Thu, 06/14/2018 - 16:58 Permalink

Ethereum dApps had a combined total of 9,824 users in the past 24 hours. Less than 10,000 people use Ethereum dApps on any given day. That's incredible, considering Ethereum is valued at $52 billion dollars, not to mention the billions in "value" of the ERC20 shitcoins that power these dApps! Imagine if Google had less than 10,000 users per day, what their market cap would be. Bancor, a "decentralized" shitcoin exchange powered by their own BNT token, has a market cap of $175 Million yet it has just 169 users a day!

https://dappradar.com/

Also, of note:

"Compared to Amazon Web Services, processing on ethereum is 150 million times more expensive."

https://www.coindesk.com/top-5-ethereum-dapps-daily-active-users/

 

face it, Ethereum is a failed idea. It's not economical. It can't scale. It's centralized. And the thing that is supposed to give it value, dApps, are not used by anyone and have zero advantages over non-dApps.

In reply to by AgainstYourThought

surf2liv Thu, 06/14/2018 - 12:54 Permalink

Anybody think MtGox loss, its leader being tribal, was a way to get a ton of bitcoin..and now this cache is being used at critical moments breaking support..thus destroying bitcoin?