Jun 14, 2018

SEC official: Ether is not a security

Illustration: Rebecca Zisser / Axios

Speaking on Thursday at Yahoo Finance's All Markets Summit in San Francisco, U.S. Securities and Exchange Commission director of Corporate Finance William Hinman said that digital token ether is not a security.

Why it matters: The digital currency industry has been awaiting for more regulatory clarity for some time, particularly around widely popular cryptocurrencies like ether and bitcoin. SEC chairman Jay Clayton recently said that the latter is akin to a currency, much to the relief of the industry.

Note: While Hinman declared ether not a security, he was careful to specify that he's referring to the token today.

  • "Putting aside the fundraising that accompanied the creation of Ether... current offers and sales of Ether are not securities transactions, " he said. "Over time, there may be other sufficiently decentralized networks and systems where regulating the tokens or coins that function on them as securities may not be required," he added, echoing recent comments by SEC Commissioner Hester Peirce who also posited that some digital tokens may seem like securities when first issued, but could change in status over time.
  • This is important as it signals that it's not a blanket pass for all tokens, and that the commission will be focused on issuance of tokens and how they fit in with securities laws.

Still in question: Whether Ripple's XRP token is considered a security or not.

Go deeper

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 665,164 — Total deaths: 30,852 — Total recoveries: 140,225.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 3 a.m. ET: 124,665 — Total deaths: 2,191 — Total recoveries: 1,095.
  3. Federal government latest: President Trump announces new travel advisories for New York, New Jersey and Connecticut, but rules out quarantine enforcement. Per the CDC, residents of those states must now "refrain from non-essential domestic travel for 14 days," with the exception of critical infrastructure industry workers.
  4. State updates: Alaska is latest state to issue a stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month and has moved its presidential primary to June 23. Some Midwestern swing voters who backed Trump's handling of the virus less than two weeks ago are balking at his call for the U.S. to be "opened up" by Easter.
  5. World updates: In Spain, over 1,400 people were confirmed dead between Thursday to Saturday.
  6. 🚀 Space updates: OneWeb filed for bankruptcy amid the novel coronavirus pandemic.
  7. Hollywood: Tom Hanks and Rita Wilson have returned to U.S. after being treated for coronavirus.
  8. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Coronavirus updates: Global death toll tops 30,000

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

The novel coronavirus has now killed more than 30,000 people around the world — with Italy reporting over 10,000 deaths, per Johns Hopkins data.

The big picture: The number of deaths from COVID-19 in the U.S. surpassed 2,000 on Saturday. The United States leads the world in confirmed coronavirus infections — more than 124,000 by early Sunday. The number of those recovered from the virus in the U.S. passed the 1,000-mark on Saturday evening.

Go deeperArrowUpdated 3 mins ago - Health

Gilead expands access to experimental coronavirus drug in emergency cases

Photo: Olivier Douliery/AFP via Getty Images

Gilead Sciences CEO Daniel O’Day said in an open letter Saturday the company is expanding access to its experimental anti-coronavirus drug remdesivir to include severely ill COVID-19 patients.

The big pig picture: President Trump has called the antiviral drug "promising," but the results of six clinical trials on this investigational medicine are still being conducted, so its effectiveness in COVID-19 the treatment has yet to be proved. The World Health Organization is involved in the tests.

Go deeperArrow25 mins ago - Health