CryptoWatch: Bitcoin and Ether rally after SEC official says they aren’t securities

Speaking at the Yahoo Finance All Market Summit, the director of corporate finance at the U.S. Security and Exchange Commission, William Hinman, said that bitcoin and Ether, the currency that runs on the Ethereum blockchain, are not securities.

“And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions,” said Hinman.

The news is welcome relief for digital currency owners who would have been subject to much stricter scrutiny should bitcoin BTCUSD, +5.40%  and Ether ETHUSD, +8.13%   be labeled securities.

“We are glad the SEC agrees with our long held analysis of how securities law applies to decentralized cryptocurrency networks like bitcoin and Ethereum,” said Jerry Brito, executive director of Coin Center, a non-profit focused on issues facing cryptocurrencies in a statement.

“We are thrilled to see it take strong pro-innovation approach to this nascent technology. With this guidance, the SEC is showing that taking a pro-innovation approach does not have to come at the expense of protecting investors.”

Bitcoin and other major digital have moved higher after the news. The No. 1 digital currency has gained more than 2%, last trading at $6,518.68, up 4.3% on the day.

Ether has soared 11.6%, last trading at $525.

Read: The SEC created a fake ICO website to show just how easy it is to scam investors

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