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.
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!