Mr Gary Gensler, financial regulator of the Obama-Government, has recently stated that ether and ripple are transgressions and that they should be categorized under unregistered securities. His remark comes right after the venture Groups had met with the SEC to promote the fact that these should not be labeled as Securities.
Mr Gary reported to the New York Times, “I would be surprised if 10 years from now this isn’t somewhere in the financial system in a meaningful way. But so much of the stuff that is being promoted now will not be around”. While stating his views, he is mostly stressing on two of the popular coins, ether and ripple. He believes that ether and ripple have high chances of being deemed as securities. However,the experts believe that if this happens, the downfall of the currencies are an obvious situation. Regulations will impose an unbearable amount of legal obligations upon them which will surely drag down the impact that they have now.
Mr Gensler also believes that Bitcoin and other cryptocurrencies are decentralizaed and does not stand as a violation to any legal framework that should call for such regulations. However, ether and ripple blurs this distinctive line since these are transgressions to the law.
“2018 is going to be a very interesting time. Over 1,000 previously issued initial coin offerings, and over 100 exchanges that offer I.C.O.s, are going to need to sort out how to come into compliance with U.S. securities law,” stated Mr Gensler. The venture capitalists’ secret visit to the SEC, enforces the fact there is a huge possibility of such regulations getting imposed. And if that happens, billions of dollars are going to be at risk. This would create a huge impact on not just ether and ripple, but the whole market as an unit, and not in a good way.