Bitcoin Magazine reports
on an in-depth podcast interview with Anderson Kill's Stephen Palley to tease out the implications of a speech by William Hinman, Director of Corporate Finance at the SEC, on the legal status of ether, a digital asset enabling cryptocurriencies. Hinman suggested that ether is not a security.
"Palley, a practicing lawyer of 20 years, explained some of the concerns that have made this possible ruling particularly sticky for the world of cryptocurrencies. Palley claimed that specific types of legal contracts are similar to executable programmable code, yet legal verdicts operate in a sufficiently more complex way. Legal verdicts require contextual considerations that must be made of the technical form as well as the economic realities of various interactions. This ambiguity is often understood by programmers that, legally, the most uncharitable interpretation of a ruling will be applied unilaterally."
Read more: A Nuanced Look at Crypto Assets as Securities in Light of SEC Comments