MicroStrategy’s CEO and vocal Bitcoin supporter, Michael Saylor, in a recent interview on Altcoin Daily said Ethereum is a security.
According to Saylor, Ethereum is not a commodity because of its changeability status. In his argument, commodities like gold, steel, and others do not have an issuer and their characteristics cannot be changed.
Ethereum, on the other hand, has had an initial coin offering, and hard forks that can be used to change its characteristics.
Saylor continued that digital asset whose code could be changed in a way that fundamentally affects their value or issuance means it passes the Howey Test under the Securities law.
So, such securities should be sold with full disclosure of who the developers are and the risks associated with the project.
Meanwhile, he argued that Bitcoin is not a security because it is fully decentralized, had no initial coin offering, and there is little interest in changing the network’s code.
The MicroStrategy boss also opined that most crypto exchanges list unregistered securities on their platform.
His views on Bitcoin and Ethereum are not unsurprising considering he is a Bitcoin maximalist. His firm, MicroStrategy, is one of the largest hodlers of the flagship digital asset.
His statement is coming on the back of Senator Cynthia Lummis’ bill that classified Bitcoin as a commodity.
According to the bill, assets that are properly decentralized and with a distinct characterization should be placed under the regulatory authority of the Commodities and Futures Trading Commission (CFTC).
The Securities and Exchange Commission (SEC) chairman, Gary Gensler, in several interviews has also maintained that most digital assets can be classified as securities.
In an interview with CNBC, Gensler said the Commission views Bitcoin as a commodity. However, he refused to provide the commission’s view on other digital currencies like Ethereum.
The commission is currently pursuing a lawsuit against Ripple over the sale of its native token XRP as unregistered securities.