While Jack Dorsey is known to be a strong supporter of Bitcoin (BTC), he has indicated that he views Ethereum (ETH) as a financial security. Let’s come back to these statements, which are part of a particular context in the United States.
For Jack Dorsey, ETH is a financial security
On the sidelines of the setbacks between the Securities and Exchange Commission (SEC) and many companies in the cryptocurrency ecosystem, Jack Dorsey, the former CEO of Twitter, shared his opinion on Ethereum (ETH) on the social network he co-founded.
First, he retweeted a post showing a screenshot of Coinbase CEO Brian Armstrong announcing in 2015 that Ripple (XRP), Stellar (XLM) and other altcoins were just distractionsand that you should focus on Bitcoin (BTC) and sidechains instead:
💯 https://t.co/GEtVbHtk4L
—jack (@jack) June 6, 2023
After that, Jack Dorsey was asked if he thought ETH was a financial security as defined by the Securities Act on which the SEC relies. The person simply answered “yes”. :
Yes. https://t.co/PrMx7yugsU
—jack (@jack) June 6, 2023
👉 To go further — Can SEC actions influence crypto regulation in Europe? Interview with Meria
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An unsurprising position
In fact, this answer is in no way surprising. And for good reason, Jack Dorsey has never made a secret of his stance on cryptocurrencies other than Bitcoinlike Gary Gensler, the chairman of the SEC, who considers that all except BTC are financial securities.
The classification of a cryptocurrency as a financial security or not is the cornerstone of the various complaints of the SEC in recent months. For this, the institution appeals to a contested interpretation of the Howey test, thus allowing it to assert its authority over current cases.
While for a large part of the ecosystem, Ethereum does not meet the criteria of this famous text, future court decisions will be decisive in determining this.
👉 Also in the News — Coinbase and Brian Armstrong Respond to SEC Complaint
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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