How Does the SEC’s Current Stance on Bitcoin and Ethereum Differ from Other Tokens?
The SEC has publicly stated that Bitcoin is not a security, and its former Director of Corporation Finance indicated that Ethereum's network is sufficiently decentralized that transactions in Ether are not securities transactions. This stance is based on the maturity and decentralization of these networks.
Most other tokens, especially those launched via an Initial Coin Offering (ICO) with a central team, are generally viewed with more scrutiny as potential securities.
Glossar
SEC
Jurisdiction ⎊ The Securities and Exchange Commission (SEC), within the context of cryptocurrency, options trading, and financial derivatives, primarily functions as the regulatory body responsible for enforcing federal securities laws.
Bitcoin and Ethereum
Asset ⎊ Bitcoin and Ethereum represent the two most significant underlying assets driving the crypto derivatives market, commanding the highest liquidity and institutional interest.
Sufficiently Decentralized
Architecture ⎊ The concept of "sufficiently decentralized" in cryptocurrency derivatives necessitates a nuanced understanding beyond mere distribution of nodes.
Current
Valuation ⎊ Current, within cryptocurrency derivatives, represents the instantaneous market price of an underlying asset or contract, crucial for pricing models and risk assessment.