EY considers ether is not a security

Why does it matter whether ether is a security or not? The SEC is clamping down on virtual currencies, and ether is in their headlights. The Commodity Futures Trading Commission (CFTC) considers Bitcoin to be a commodity, so it’s off the hook. In EY’s opinion, for accounting purposes, ether should be treated the same as Bitcoin.

Why it matters

If ether is considered a security, then two things will happen. Trading will dramatically reduce because exchanges will have to be authorized by the SEC to trade in ether in the US. Secondly the founders could be in deep trouble.

Article continues …