JPMorgan says Hinman Documents release in SEC-Ripple case boosts Ether.
JPMorgan (JPM) has stated in a research report that the release of the Hinman papers by Ripple last week, which were published by Ripple in its defense against an SEC lawsuit, is likely to boost ether (ETH) and prompt a move to greater decentralization in the crypto market.
The report noted that in 2018, senior leadership at the US Securities and Exchange Commission (SEC) did not rank ether as a security, and SEC officials acknowledged that the “fact that tokens on a sufficiently decentralized network are no longer securities creates a regulatory gap.”
The report added that these revelations could explain why the regulator has not taken action against ether while targeting other crypto tokens this year, and that the easiest solution for Congress would be to put ether in the same category as bitcoin (BTC), and regulate it as a commodity under the oversight of the Commodity Futures Trading Commission (CFTC).
JPMorgan has also suggested that a new “other category” could be introduced that is specific to ether and other cryptocurrencies that are decentralized enough to avoid being classed as securities. The bank added that the “more decentralized a cryptocurrency is the higher its chance that it would avoid being designated as a security.”
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The report concluded that the Hinman documents will likely intensify the race among major cryptocurrencies to become more decentralized and look more like ether.
Read more: Classifying Crypto Tokens as Securities Will Hamper Some Blockchain’s Decentralization Efforts, Bernstein Says
Edited by Sheldon Reback.
