In our article for Bloomberg Law, we discuss the legal questions arising out of the announcement by William Hinman (SEC Director of the Division of Corporate Finance) that ether and bitcoin—the popular cryptocurrencies—would not qualify as securities. Numerous news organizations, as well as FinTech and cryptocurrency blogs, jumped on the announcement, reporting it as a major clarification regarding the legal status of cryptocurrencies and initial coin offerings. Unfortunately, there is a real risk that, rather than resolving whether digital coins qualify as securities, Director Hinman’s remarks may have confirmed that cryptocurrencies remain in regulatory limbo.
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