An internal conflict within the U.S. Securities and Exchange Commission (SEC) has shed light on the potential fallout that could arise from making a direct statement about Ethereum’s status as a security. The debate revolves around a speech delivered by William Hinman, the former Director of the SEC’s Division of Corporation Finance, in which he discussed the regulatory implications of cryptocurrencies

Hinman’s speech, delivered in June 2018, provided some clarity on the regulatory status of cryptocurrencies, particularly focusing on Ethereum. However, recent correspondence has come to light, indicating internal reservations about the inclusion of a specific statement about Ether’s classification. The concerns raised within the SEC suggest that making a direct statement about Ethereum’s status as a security could have far-reaching consequences, both legally and within the cryptocurrency market.

According to the internal correspondence, SEC officials expressed reservations about including a sentence directly addressing Ether in Hinman’s speech. They highlighted that such a statement could hinder the agency’s ability to adopt a different position on Ethereum’s regulatory classification in the future.

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