SEC to Decide on Monday, May 7th If Ethereum Is a Commodity or Security

Ethereum

The SEC will tomorrow, Monday, 7th May 2018 deliberate on whether to designate Ethereum as a commodity or to leave it within the commodities regulatory framework. It is not immediately clear if any far-reaching decision will be made at the hearing tomorrow, but what's certain is that the outcome is going to have a big impact on Ethereum.

Take the case of Bitcoin: The US Banking, Housing and Urban Affairs Senate committee hearing on Tuesday, Feb. 6th, 2018; chaired by Jay Clayton, the Commodity and Futures Trading Commision (CFTC) chairman led to a relief in cryptocurrency markets. Before then Bitcoin, which traded below $6,000 as around 12:00 p.m EST on Feb. 6th, rallied to $8,200 within twenty-eight hours of the hearing.

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Tomorrow's hearing promises to have the same effect on Ethereum.

If the SEC designates Ethereum as a security tomorrow, I foresee a price drop -- because a lot of investors will not actually know what a security designation implies leading to confusion and sell-offs. This effect won't be witnessed in Ethereum alone but within the wider cryptocurrency eco-system.

If on the other hand, Ethereum escapes a security designation on Monday, I truly believe that we are going to see a big spike in Ethereum price.

Alexis Ohanian, Reddit co-founder predicts Ethereum will begin its ascent to $1,500 by year end (Yes, he didn't say $15,000 -- somebody, it seems, was handing out zeroes like candy at CoinTelegraph).

What are your thoughts on tomorrow's hearing and its effect on Ethereum? Please share with us!

I agree that Ethereum being deemed a security by the SEC would likely have a negative effect on its price (in the short-term).

However, the technology remains unchanged regardless of this hearing's results, and it is the technology itself that ultimately matters in the long haul. Ultimately, this hearing shouldn't matter much, but it will still be interesting to follow--and could possibly set a precedent for future hearings of other cryptocurrencies.