The chairman of the US Securities and Exchange Commission (SEC), Jay Clayton, expressed the opinion that the second most capitalized Ethereum cryptocurrency, most likely, cannot qualify as a security. Reported by The Block .

Back in June of last year, the head of the SEC Corporate Finance Department, William Hinman, expressed the opinion that Ethereum does not contain the properties inherent in securities:

“If we leave aside the fundraising, which was organized to launch Ethereum, the network of this cryptocurrency, its decentralized structure, current offers and sales of ETH do not constitute securities transactions. As with Bitcoin, applying securities law to Ethereum doesn’t seem to bring much benefit. ”

Some time later, Congressman Ted Budd and Coin Center’s bitcoin and blockchain industry advocacy and advocacy organization sent a letter to Clayton asking him to clarify the official position of the agency regarding Hinman’s comments.

The SEC has only now published a response to this letter, which states that “the status of a digital asset as a security cannot be static” and, therefore, can change over time.

The Commission notes that a cryptocurrency can be sold as a security immediately after issuance, meeting the definition of an investment contract. However, after a while, the digital asset may be sold or offered to other users no longer as an investment object.

Clayton added the following:

“I agree with Hinman’s explanation that a digital asset transaction may cease to be an investment contract. For example, if buyers have no reason to expect that a person or group of individuals will show management efforts and entrepreneurial skills. Under such circumstances, a digital asset may not constitute an investment contract in the context of the Howie test. ”

Recall last summer, Jay Clayton said that Bitcoin can not be attributed to the category of securities.

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