The market lifted during the day yesterday and the upsurge was eventually enhanced by the news that stated that neither Bitcoin nor Ethereum was considered securities by the SEC.
Yesterday, the SEC stated that neither Bitcoin nor Ethereum are considered securities and will not be regulated thereafter. On the other hand, the SEC says that several ICOs and tokens will be considered securities and fall under their regulation.
To exemplify what the SEC is based on here, they focus on whether an underlying asset, such as Ethereum, is controlled by a third party. What is meant by checking here is to find out if the third party’s efforts will directly affect the price development. In terms of Ethereum, it was concluded that most people are purchasing Ether today to use it in an existing network and that the structure is adequately decentralized.
The counterpole of what is mentioned above would be if you buy a token or coin in a project controlled by a third party that is under development and you wonder if the asset will rise in value based and depending on the choices the third party is taking and the success it may cause. This example can easily be related to a limited company where you buy an asset in a company and the value development in what you buy is directly influenced by the choices and efforts made by the company.
The SEC uses a separate example: If you buy a membership to a golf club that you can use today, it is not an investment in securities that can increase in value. However, if you buy one or more memberships in a golf club in the project phase and have the opportunity to sell these to a higher price based on how well the golf course is, then you have purchased a security/security. It is a simple analogy to understand the thinking.