MicroStrategy CEO said that Ethereum is classified as a security

MicroStrategy is once again in the headlines after its CEO Michael Saylor said that Ethereum is classified as a security.
MicroStrategy is once again in the headlines after its CEO Michael Saylor said that Ethereum is classified as a security.

The business intelligence company and a massive Bitcoin holder MicroStrategy is once again in the headlines after its CEO Michael Saylor said that Ethereum is classified as a security.

During a recent interview with Altcoin Daily, Saylor discussed the potential of Ethereum as security by stating that it represents an investment in the underlying platform and protocol. He states:

“Investing in Ethereum is investing in the success of the Ethereum network and ecosystem.”

He went on to say that Ethereum’s utility as a platform for creating dApps and its function as the basis of a global financial system are what give it its worth.

The tremendous potential of Ethereum

Saylor said that he thinks Ethereum has tremendous potential and is one of the most intriguing investments available right now.

On the other side, Ethereum has a pre-mined coin that offers difficult forks that may be used to alter its properties. Saylor continued to say that digital assets that have the potential to be coded in a way that directly affects their value or issuance may pass the Howey test.

As a result, such security must be provided along with full disclosure of the identity of the builders and the risks involved in the task. Because of its coding capabilities, ETH is significantly more adaptable than BTC. For instance, Ethereum can be instantly modified to reflect a sudden shift in market conditions, but Bitcoin would remain rigid.

According to the regulation, assets that have been properly distributed and identified must be placed under the Commodities and Futures Trading Commission’s (CFTC) regulatory control.

Notably, SEC chair Gary Gensler has asserted in a number of interviews that virtually all digital assets can be categorized as securities. In the hot legal battle between Ripple Labs and the SEC, Ripple’s CEO claimed that the regulator pushed Ethereum to surpass Ripple.