Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Ethereum (ETH) Sees Market Woes as US Regulatory Hearing Looms

Published 05/07/2018, 09:18 AM
Updated 05/07/2018, 09:32 AM
 Ethereum (ETH) Sees Market Woes as US Regulatory Hearing Looms

Ethereum (ETH) Sees Market Woes as US Regulatory Hearing Looms

Ethereum (ETH) saw unprecedented growth in the past days - but for US investors, the digital asset may soon become unpalatable. A looming hearing in New York later this Monday was set to define the status of the asset. At this point, both the Ethereum foundation and ICOs have used creative language to dispel the accusation of selling unregistered securities.

However, the final decision is at the hands of regulators, and the verdict will define the path of the markets.

https://twitter.com/WhalePanda/status/993420664769040384

After the news, ETH market prices sank a bit, to $732.80, down around 5% net in the past 24 hours.

!ETH!

Ethereum may be vulnerable for the fact of performing an ICO back in 2014. Despite the registration of the Ethereum Foundation in Switzerland, the selling of ETH tokens may be seen as distributing securities, since this meant participation in the larger Ethereum project.

It is unknown how the verdict, when it becomes known, may affect the markets. Besides hampering US-based investors, Ethereum will remain accessible worldwide. And when it comes to crypto-only exchanges, there are no limitations for switching between coins.

Additionally, Ethereum has shown it is more dependent on the Asian markets, as well as on trading against the Tether (USDT) asset. Other tokens have various risk profiles, and some are not so popular with American investors.

Hence, the talks of pronouncing Ethereum a security, and holding the Ethereum Foundation responsible, may have a limited effect on prices, modified by the price pressures from Asian investors.

https://twitter.com/JamesTodaroMD/status/992797103377276929

Some go with the hypothesis that the usage of ETH tokens today is quite different from the fundraising purpose during the ICO. As a digital asset, ETH is not centrally issued, and is produced by distributed miners worldwide. The lack of a central issuer means no one is to be held accountable for Ethereum coins.


This article appeared first on Cryptovest

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.