In an interview with Altcoin DailyMicroStrategy CEO Michael Saylor said Ethereum (ETH) is security.
According to Sailor, the fact that Ethereum was first issued through the first coin offering proves that it is not a commodity.
“There is management. There was pre-mining. There is a hard fork. There is a continuous hard fork.”
He also talked about the Ethereum difficulty bomb and how it would continue to be postponed every six months. This helps prove that the asset is secure.
If the Ethereum difficulty bomb explodes, it is discouraging miners and indicates that the network has completely transitioned to the Proof of Stakes network.
Michael Saylor classifies most crypto assets as securities
In Saylor’s view, cryptocurrencies can only become commodities if there is no issuer and no one has made a decision on the network.
Sailor said,
“If you look at most of these ciphers that have a hard fork after a hard fork, it means that the problem with the hard fork is a protocol change and the development team is making a decision. Whether the protocol can be changed. In a material way, you can change the monetary protocol. Hard forks can change the issuance pattern or change the value of something. So it’s under securities law. Conclude an investment contract. “
Sailor also considers Ethereum’s ability to change as far as securities law is concerned. According to him, people want a decentralized protocol like Bitcoin that can’t be changed.
Meanwhile, he admitted that securities have those uses. However, “complete and fair disclosure” is required for these tokens.
In addition, he pointed out recently statement According to the Securities and Exchange Commission (SEC), the cryptocurrency that generates staking yields is security.
Sailor’s statement came shortly after a proceeding against Solana (SOL) about being security.
Cryptographic community does not agree
Many in the crypto community disagree with this view. Some podcasters point out that even Gary Gensler, chairman of the SEC, does not describe Ethereum as security.
George CryptosRUs Even Bitcoin pointed out that there were upgrades, including the SegWit upgrade, which is part of the reason for Bitcoin Cash hard forks.
In addition, Senators Kirsten Gillibrand and Cynthia Lummis have proposed a crypto bill that specifically classifies Bitcoin (BTC) and Ethereum as commodities.
