After weeks of speculation, it seems clear that Ethereum will not fall under SEC’s designation for securities. Cryptocurrencies rallied on Thursday as investors welcomed SEC news. Bitcoin jumped to 6,750, Ethereum rallied to 530.00, and Bitcoin Cash recovered to 908.00.
SEC’s official says Ethereum and Bitcoin are not securities
It seems the speculation is over after SEC head of the Division of Corporate Finance William Hinman affirmed that neither Ethereum and Bitcoin are securities as decentralization is key to whether or not a currency is a security.
In the same thinking, Initial Coin Offerings might be considered securities. In a conference at the Yahoo All Markets Summit, Hinman said that the major consideration to call ICOs and cryptocurrencies as securities were the expectations of return and how issuers of assets controlled the development and maintenance of the asset. So, ICOs may fall on those circumstances.
However, decentralization may be the key to cryptocurrencies such as Ethereum and Bitcoin can maintain certain independence in the roles of the key players.
Bannon loves bitcoins
Former Donald Trump chief strategist Steve Bannon is in love with cryptocurrencies according to a report from the New York Times.
According to the news, Bannon made a decent investment in bitcoin as the cryptocurrency “it’s disruptive populism,” and “it takes control back from central authorities. It’s revolutionary.”
Bannon was also reported to be considering creating a new cryptocurrency called “deplorable coin,” in an attempt to remind the populist slogan taken from Hillary Clinton words describing Trump’s supporters.
Bitcoin jumps on Thursday, consolidates on Friday
Bitcoin joined the bullish sentiment born from the comments made by SEC officials, and the BTC/USD jumped over 5% on Thursday to extend recovery from 6,150 levels and to close at 6,650.
The crypto king is currently trading at 6,582, 0.85% down on Friday. The pair is moving in consolidation mode after the recent jump.
To the upside, the pair needs to recover the 6,800 area before start believing in a recovery. A break above 6,900, will open the doors to the 7,200 and 7,300 levels.
On the other side, if the pair manages to consolidate levels below the 6,450, it will find next support at the 6,000 level with a focus on the critical 5,870 line. Below, only the 5,550.
ETH/USD recovers back the 500 level
Ethereum rallied on Friday as SEC official William Hinman comments fueled the cryptocurrency. Ethereum is not a security, and the market welcomed it.
ETH/USD jumped almost 10% on Friday with the pair closing at 506.00. Ethereum is currently trading at 506.00, 2.6% down on Friday.
To the upside, Ethereum needs to consolidate levels above 500.00 before making bulls believing. Above that, 560.00 is the natural resistance and then 630.00.
On the other hand, below the 450.00, Ethereum will find support at 430.00. Then, the last frontier lies at 400.00.