The Ethereum SEC+CFTC Meeting Was a Hoax

So, this afternoon (GMT-4) around approximately 2 p.m. EST, I decided to do some investigative journalism (hardy har) and call up the SEC. I live in the United States, and I’m familiar with them as an entity.

I figured, why not?

“Hold Up, What Are You Talking About CryptoMed?”

I’m referring to the news that’s been proliferated around the cryptospace about an alleged meeting between the CFTC and the SEC to discuss whether Ethereum will be classified as a ‘security’.

Below, are the numerous articles that have come out about the alleged event, which was slated to occur today (May 7th, 2018):

SEC Inquiry: Should regulators treat Ethereum as Security or NOT?

SEC Inquiry: Should regulators treat Ethereum as Security or NOT?

SEC Inquiry: Should regulators treat Ethereum as Security or NOT?

SEC Inquiry: Should regulators treat Ethereum as Security or NOT?

You get the point.

So, Why Do You Say it’s a Hoax?

Because I called them today to ask.

Check out this tweet below:

https://platform.twitter.com/widgets.js

Above is a tweet of a video that I took of me calling the SEC directly (Jay Clayton’s office) to ask about this.

As you can hear, the woman picks up the phone, somewhat exasperated, as if she had been asked this question all day long and informs me that they have absolutely no clue what I’m talking about.

So, Why Did Everyone Think This?

It appears that these rumors stemmed from this WSJ article:

SEC Inquiry: Should regulators treat Ethereum as Security or NOT?

I know that WSJ has a paywall, here’s how you get around it.

  1. Copy and paste the title of the article, “World’s Second Most Valuable Cryptocurrency Under Regulatory Scrutiny”
  2. Throw it in Google
  3. Click on the WSJ link that comes up in the results.

Content of the Article

Within the article, they enumerate the fact that Ether is one of the cryptocurrencies that has been in contention among those in the SEC & CFTC in regards to whether or not it is a security.

This is something that I don’t dispute. However, this is information that we’ve known. Is it possible that they’re discussing it today? Sure.

However, the idea that there is an overarching, draconian decision that will be made on Ethereum today — May 7th — is something that is entirely false. There is no information from the WSJ article or any other source to corroborate this idea.

Conclusion

In light of this information, I’m fairly convinced that there was agenda behind proliferating this news. I noted that there was very strange price activity on Ethereum a few days ago in this Medium article that I had posted:

SEC Inquiry: Should regulators treat Ethereum as Security or NOT?

Whether or not this was a coordinated effort remains to be seen.

But, I think it would do the cryptocommunity much good if we were able to source where these rumors were originated from. We’d probably uncover substantially more information.

If you got caught by these rumors, don’t feel bad — we all did. It sounded plausible, right? I can tell you that I did.

I guess we all learned a valuable lesson about confirming things with the SEC/CFTC first before moving forward with any assumptions.

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