Over the past few days, the cost of Ethereum reduced five times. The reason for this was the rumors about the meeting of US regulators aiming to find a way to classify this cryptocurrency.
Last week, The Wall Street Journal reported that the representatives of CFTC and SEC are going to discuss the issue of whether the cryptocurrencies can be regulated as securities.
This meeting was planned for May 7. The conclusion of officials is still unknown, but many crypto traders already worry about their investments.
The matter is that recognition of Ethereum as securities will strongly affect many other tokens in the blockchain and cryptocurrency system. Cryptocurrencies based on ERC20 standard are especially endangered.
Quartz business magazine suggests that the currency exchanges will have to register at SEC in order to avoid large fines. Disappearance of Ethereum from the trading platforms, most likely, will significantly reduce the cost of this cryptocurrency.
At the end of April of this year, the former chairman of CFTC Gary Gensler hinted that Ethereum and Ripple have much more in common with securities than Bitcoin, Litecoin, and Bitcoin Cash. A bit later, Ethereum co-founder Joseph Lubin reported The Street magazine that the regulators understand the essence of Ethereum very well. Lubin noted also that Ethereum and other cryptocurrencies have never had anything to do with securities, which is very handy for users.