Cryptocurrency

Ethereum’s Vitalik Argues With Bitcoin Maxis Over the Token's Asset Classification

Claiming that some of them are repeating, unmitigated lies.

Cryptocurrency

Ethereum’s Vitalik Argues With Bitcoin Maxis Over the Token's Asset Classification

Claiming that some of them are repeating, unmitigated lies.

In a tweet Tuesday, July 12, Vitalik Buterin commented on the ongoing argument of whether Ethereum should be classified as a security. In his comments, seemingly in defense of the asset not being security, he said that some Bitcoin maxis were repeating unmitigated lies that Proof of Stake (PoS) includes voting on protocol parameters.

This clarification is important because it makes a difference in the asset’s ability to pass or fail the Howey Test — passing the test would make it subject to United States‘ securities laws. If in fact ETH is found to have any type of voting on parameters, it would then pass the test, and according to SEC Chair Gary Gensler, it does.

In somewhat of a jeering tone, Gensler remarks in the video that “if you pass you are a security, just a little vocabulary thing.” In the same manner, Vitalik tweeted “Also, small grammar nuance: in English when talking about things like proof of stake, we don’t say ‘it’s a security’, we say ‘it’s secure’. I know these suffixes are hard though, so I forgive the error.”

The tweets from Vitalik come just weeks after Gensler stated he views Bitcoin as the only cryptocurrency that could be classified as a commodity and days after BTC billionaire Michael Saylor spoke on why he thinks ETH is an “obvious” security.

Saylor argued that “if you can change the characteristics of it — then it is not a commodity, it is a security.”

In other news, Twitter is suing Elon Musk for backing out of his $44 billion USD acquisition deal.

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