To investors, A popular bitcoin maximalist talking point for years has been “bitcoin is the only crypto commodity and the rest of the tokens are unregistered securities.” How do I know that has been the talking point? Because it is something that I believed for a long time. It is something that I have heard repeated over and over again by various bitcoin friends. But over the last 12 months I’ve changed my mind. It became obvious that assets other than bitcoin would end up on Wall Street. Some of them would be considered a security, but most of them wouldn’t be. The issuers of these assets became too skilled at launching tokens and networks, while making sure to not create a security based on the traditional definition and regulation. Yesterday we got word from Consensys, one of the most important players in the ethereum ecosystem, that the SEC has closed their investigation into ethereum 2.0. They wrote:
This notice from regulators, combined with the incoming approval of the Ether ETFs, confirm that the SEC will not classify ethereum as a security. The CFTC has already classified the asset as a commodity and it appears that will be the agreed upon status moving forward. There will be many people in the bitcoin community who ignore these data points. This will be a mistake. When the facts change, you must change your mind. It is a sign of intelligence when you do. Ethereum’s classification as a commodity will have far-reaching implications in the market. As I wrote to you all on June 7th in my letter titled Altcoins Are Coming To Wall Street:
The altcoin market provides volatility and risk. Wall Street is salivating over the opportunity to allocate to this part of the market. Now that ethereum is a commodity, I would expect regulatory clarity on a number of other assets in the next 12 months. As we get that regulatory clarity, capital will flow. ETFs will be approved. Retail will keep buying. Institutions will get in the game. The market caps of many assets will grow to be much larger than we ever imagined. And many of the altcoins will also be worth zero. They will end in ruin and tears. But this is how markets work. A truly free market allows participants to allocate their private capital how they see fit. The rewards go to those who are right and the losses gravitate to those who are wrong. Rather than debate which assets will win or lose, we can let the market be the referee. There is something beautiful in that. Hope you all have a great day. I’ll talk to everyone tomorrow. -Anthony Pompliano Phil Rosen, the Co-Founder of Opening Bell Daily, interviews Anthony Pompliano. Topics include bitcoin, President Trump's recent support of the industry, interest rates, financial media, and more. Listen on iTunes: Click here Listen on Spotify: Click here Anthony Pompliano on Bitcoin, Bull Markets, Interest Rates, and the Presidential RacePodcast Sponsors
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