The comments from JPMorgan analysts came after the ongoing lawsuit against Ripple Labs, with dissent from Securities and Exchange Commission (SEC) functionaries over the position of former Corporate Finance Director Bill Hinman.
Hinman said back in 2018 that ether is not a security and that the Ethereum blockchain is an aggregate network of decentralized blockchains.
SEC officials told the court: the fact that it acknowledged that decentralized network cryptoassets are not securities could create a “regulatory gap in the current law.”
According to JPMorgan strategists, a way out of the legislative conflict could be a decision by the U.S. Congress to place ether in the same commodity category as bitcoin, or create a special category of cryptoassets with less burdensome regulatory rules.
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“It is possible that a special accounting category could be specifically created for ether and other crypto-assets that are fairly decentralized and cannot be formally classified as securities. It is likely that the new category will provide for greater restrictions and investor protections than are currently provided for commodity groups. But it will be less onerous than those required to issue securities,” said a group of JPMorgan strategists led by Nikolaos Panigirtzoglou.
Earlier, Forbes reported
the results of its own investigation into the corporate structure of the cryptocurrency exchange Binance and its subsidiaries. According to journalists, there is a possibility that Changpeng Zhao may not have had the final say in key management decisions within the Binance ecosystem;