Unchained ‘Is ETH a Security?’ Why Gary Gensler Couldn’t Give Congress a Straight Answer - Ep. 483
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Apr 21, 2023 
Join Jason Gottlieb, a partner at Morrison Cohen and chair of the Digital Assets Department, as he dives into the heated debate on whether Ethereum should be deemed a security. He analyzes the potential fallout if the SEC makes such a declaration and questions the agency's impact on investors. Gottlieb also discusses ongoing litigations against exchanges like Bittrex and Beaxy, and the SEC's efforts to broaden the definition of exchanges, raising concerns about the future of DeFi in the U.S. Don't miss this insightful legal perspective on crypto regulation!
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Gensler's Contradictory Stance
- Gary Gensler's refusal to clarify ETH's security status creates market uncertainty.
- This ambiguity contradicts his claim that crypto regulations are clear.
Crypto's Unique Property
- Cryptocurrencies, unlike traditional securities, can separate the software (digital asset) from the investment contract.
- This allows for non-investment uses, exemplified by Gottlieb paying ETH for a birthday message.
Negative Impact of ETH Security Declaration
- Declaring ETH a security would harm current holders by immediately devaluing their assets.
- This contradicts the SEC's purported goal of investor protection.
