Ethereum’s price dropped over the weekend as rumors spread about the SEC holding a hearing to declare top currencies Ethereum and Ripple as securities. They stemmed from an article by Wall Street Journal about the convening of regulatory authorities SEC and CFTC to discuss the status of Ethereum and Ripple as non-compliant securities.
The declaration of these coins as securities will have a negative impact on their usage and prices, as exchange desks will be forced to remove these or must pay steep fines. This would also undoubtedly hinder adoption.
John McAfee, a popular influencer in the crypto-sphere spoke about these rumors on the status of Ethereum as a security, saying that “Fish will ride bicycles before Ethereum is declared a security.”
He also spoke about how Bitcoin was out of their realm. He stated:
“The SEC made us fear Ethereum because Bitcoin was so obviously just a currency and out of their realm. They want to crush crypto, so the only way to scare us is to frown at Ethereum. The legal field is clear: Fish will ride bicycles before Etheteum [sic] could be called a security.”
Twitter users responded to the tweet with the same attitude, with user Nick saying:
“Mr McAfee you sir are a force to be reckon with”
User Russell says:
“Telling it as it is, as usual. Love it, mate!”
In response to the rumors, Joseph Lubin, Co-Founder of Ethereum, said in an interview with TheStreet that Ethereum is “not a security; it was never a security”. He stated that Ethereum was “absolutely unconcerned about the current discussions”.
He also mentions about Ethereum having no need for regulations by stating:
“We spent a tremendous amount of time with lawyers in the U.S. and in other countries, and are extremely comfortable that it is not a security… Because all these different actors are providing their resources to run the platform, you need to pay them for providing their resources.”
The price of Ethereum rallied after the drop caused by the rumors, which was from $683 to $640, after hitting a high of $834 on May 6th. It is currently trading at $757, at the #2 position by the overall market cap.
The post ‘Fish will ride bicycles before Ethereum [ETH] is declared a security’ – John McAfee appeared first on AMBCrypto.