BTC bull Michael Saylor argued that ETH is security and was issued through an ICO with the network having undergone fundamental changes over the past few years, so read more today in our latest Ethereum news.
BTC bull Michael Saylor said Ethereum is obviously a security and doubled down on labeling BTC as the only commodity in the crypto space. Saylor was asked about his views on the classification of BTC and ETH as commodities by US senators like Cynthia Lummis and Kristen Gillibrand alongside other leading figures from the US SEC and the CFTC. Saylor gave a lengthy explanation of what he thinks are the biggest differences between the BTC and ETH networks while suggesting that only the former remained unchanged:
“I think Ethereum is a security, I think it’s pretty obvious, […] it was issued by an ICO, there is a management team, there was a pre-mine, there is a hard fork, there are continuous hard forks, there is a hard bomb that keeps going to be postponed.
The CEO argued that the need for software upgrades on the network driven by a team of entities represents an indication that ETH is secure. He noted that the difficulty bomb design and delays will likely murder the entire ETH mining industry. Saylor believes that for a digital asset to be classified as a commodity, it will need to be backed by a decentralized protocol where no one can change it even if they wanted to:
“For it to be a commodity, there can’t be an issuer, and the truth is, you can’t really make decisions. I mean, one of the core ideas of the crypto industry is that the fact that you can change it is what makes it a security.
Securities and understood as fungible and negotiable financial instruments that are used to raise capital in both public and private markets. While commodities are considered goods or assets with monetary utility, assets such as gold and silver are considered commodities. Saylor reiterated that BTC is a commodity whose core BTC network cannot change:
“If you want to establish yourself as a digital commodity, then you try to create something like gold in cyberspace.”
Despite Saylor’s arguments, the BTC network has seen several network upgrades over the years and the most notable was the 2021 Taproot soft fork which aimed to improve BTC’s scripting capabilities and privacy. When asked what he thinks of other altcoins like gimbalsaylor said:
“I think all proof-of-stake networks are securities and they’re all very risky […] it is above my salary level, the regulators will decide whether or not they allow them to continue or not they do not allow them to continue.
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