Michael J. Saylor, Co-Founder, Chairman, and Chief Executive Officer of Nasdaq-listed business analytics firm MicroStrategy Inc. (NASDAQ: MSTR), deems Ethereum ($ETH) to be “quite clear” as security.
Saylor, a prominent Bitcoin maximalist, made his remarks on July 7 during an interview with the crypto market commentary programme “Altcoin Daily,” according to a report by The Daily Hodl. Saylor was requested by the show’s host to comment on the classification of Bitcoin and Ethereum as commodities by certain U.S. senators and a few Securities and Exchange Commission (SEC) and Commodities and Commodities Futures Trading Commission officials (CFTC).
Saylor cited the following grounds for his belief that Ethereum is security: There can’t be an issuer because, in all honesty, you can’t really make judgments if it’s just a commodity. One of the most important realisations in the crypto sector is that the ability to alter it is what makes it security.
Hard forks are problematic because each time the protocol is altered, someone on the development team has to make a call; and if the protocol is altered significantly, the monetary protocol may also be altered. This is the case with most cryptocurrencies. A hard fork may alter the distribution pattern or the value of something. Thus, this is an investment contract under the Securities Act.”