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Why EOS Could be the Safest Cryptocurrency – Bywire Blockchain News

LONDON (Bywire News) – When is a cryptocurrency a security? That’s what’s proving to be a key question for the crypto community, and one new development could pose an enormous upside for EOS. 

Giving evidence in the ongoing lawsuit between the SEC and Ripple, the SEC is now arguing that it has not – contrary to common belief – declared Bitcoin and Ether to be compliant cryptocurrencies. Ripple is currently defending itself in a lawsuit brought by the SEC accusing it of running unlicensed securities. If the court finds in the SEC’s favour, the implications for Ripple and other cryptocurrencies could be devastating. 

The question of whether cryptocurrencies should be seen as currencies in their own right or securities will be crucial to how the sector will be regulated. The SEC’s evidence, in this case, represents the latest in a series of hints that the regulatory landscape could be moving against cryptocurrencies. In a recent interview, Gary Gensler, the current chair of the SEC said he agreed with his predecessor’s view that any cryptocurrency launched as a result of an ICO could be classified as a security. 

Until now, Bitcoin and Ether had been notable exceptions. In 2018 the SEC’s Director of Corporate Finance William Hinman said they would not be treated as securities partly due to their decentralised nature. Their evidence in this new case would appear to contradict this stance and could mean just about every cryptocurrency facing intense investigation. 

Opportunity knocks 

For EOS, though, it could be good news. In 2020, B1 was sued by the SEC who viewed its $4bn ICO which launched EOS as being unlicensed security. B1 agreed to pay a settlement of $24 million but made no admission. Crucially, it secured an exemption from the SEC from the usual restrictions which would normally have been put in place with one of these rulings. 

The decision, it can be argued, means EOS has also satisfied the SEC on its status and puts it in a uniquely favourable position. If the SEC’s evidence in the Ripple trial is to be taken at face value, every cryptocurrency – including the big two of Bitcoin and Ether – could be classed as a security, which may put them in the regulator’s firing line. 

It casts a shadow over the entire sector except for EOS. That agreement with the SEC could now become incredibly valuable. It has already done the hard work and satisfied the regulator. It may be that the EOS case represents a pathway for other cryptocurrencies to reach an agreement with the SEC. For now, though I have a unique status and represents the safest cryptocurrency to invest in. Once the market catches on, the sky could be the limit. 

(Written by Tom Cropper, edited by Klaudia Fior)

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