In April 2018, the former head of the U.S. Commodity Futures Trading Commision (CFTC) Gary Gensler declared that some of the most popular cryptocurrencies in the world - Ripple and Ethereum, can be classified as securities. He said that it is necessary to pass a test called Howey Test to make it.
"The SEC and regulators need to be clear," Gensler said at the MIT Technology Review’s Business of Blockchain, - “Many cryptocurrencies “are operating outside of U.S. laws.”
He also added that tokens “sold in initial coin offerings are subject to increased control by US regulators, but some of the biggest crypto conversions do not necessarily shut down.” The Ethereum Foundation did not comment on that statement. However, the market did not ignore these statements. In addition, after the words of Gensler, the cryptocurrency reacted by falling.
Gensler made another statement. “If the SEC decides that any of the crypto-fibers are securities, then its issuers are likely to be in court,” he said. According to the official, the SEC can decide in nine months or a year, or from two to five years.
On June 14 however, SEC have stated that ethereum is considered sufficiently decentralized to avoid baing classified as a security in accordance with the US law. Considering this news, the world again changed how it vied the cryptocurrency and the price of the ETH (ETH/USD) has grown by over than 10%.
Finder Panel made another good prediction for the cryptocurrency which was based on the price of Ethereum on May 30, 2018 ($572.88). They believe that by July 1, 2018, the value of the cryptocurrency will be $659.00. Moreover, by the end of the year, according to the prediction, ETH will see 82% growth. By December 31, the value of the cryptocurrency will be $1,045.44.
The Finder Panel expert Craig Cobb said:
"The $600 mark on the ETH has recently been a minor support/resistance. ETH also held its position better than some others in the Top 10, and had a very strong influence on recent lows of $360. The fact is that ETH is still necessary for most ICOs.”