The Ethereum price (ETH/USD) has fallen in today’s trading, unable to maintain the positive momentum it gained in late Thursday trading.
The second-largest cryptocurrency on the market received a huge boost in yesterday’s late trading, which allowed it to rebound from an intraday low of $467.47 and return above the $500. Fuelling the rally were comments made by US Securities and Exchange Commission (SEC) director of corporate finance William Hinman, who said that Ethereum and its larger rival Bitcoin should not be treated as securities.
While cryptocurrency observers and experts have generally agreed that Bitcoin is unlikely to be considered as a security by the SEC, some have suggested Ethereum might be treated differently, because there is a common entity, the Ethereum Foundation, behind the asset.
Speaking at the Yahoo! All Markets Summit: Crypto conference on Thursday, Hinman indicated that the regulator had a different view on the matter.
“When I look at Bitcoin today, I do not see a central third party whose efforts are a key determining factor in the enterprise,” Hinman said. “Applying the disclosure regime of the federal securities laws to the offer and resale of Bitcoin would seem to add little value”.
“And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions,” Hinman added. “And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value.”
The Ethereum price reached an intraday high of $523.55, before closing yesterday’s session at $519.74. The coin successfully defended the $500 mark in today’s morning session, but has slipped below that level in more recent trading.
As of 13:51 BST, the Ethereum price stood at $492.62, up 1.7% from the same time yesterday. The coin’s total market capitalisation currently stands at $49.3 billion.
For further information on how to buy and trade Ethereum, see our comprehensive Ethereum guide.