BTC bull Michael Saylor: Ethereum is 'obviously' a security

MicroStrategy CEO argued that ETH is a security because it was issued through an ICO and his network suffered from many fundamental changes over the years.< /p> New

MicroStrategy CEO and Bitcoin (BTC) bull Michael Saylor says Ethereum (ETH) is “obviously” a security, as it doubled down on its labeling on BTC as the only commodity in the crypto sector .

In an interview with Altcoin Daily, Saylor was asked about his views regarding the classification of BTC and ETH as commodities by US Senators such as Kirsten Gillibrand and Cynthia Lummis, as well as figures of the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).

Saylor provided a lengthy description of the fundamental differences between the Bitcoin and Ethereum networks, as he suggested that only the former has remained unchanged over the years:

"I think Ethereum is a security, I think it's pretty obvious, [...] it was issued by an ICO, there's a management team, there was a pre- mine, there is a hard fork, there are continuous hard forks, there is a difficulty bomb that keeps being pushed back.”

The CEO argued that the constant need for software upgrades on a network driven by a team or entity represents an indicator that ETH is a security. He cited the long-delayed difficulty bomb design, which he says will "kill" the entire ETH mining industry as an example.

According to Saylor, for a digital asset to be classified as a commodity, it must be backed by a "completely decentralized protocol where no one can change it even if they wanted to change it".

"For it to be a commodity, there can be no issuer, and the truth is, you can't really make decisions. I mean one of the fundamental ideas of the crypto industry is that the fact that you can change it is what makes it secure,” he said.

Securities are generally understood as fungible and tradable financial instruments used to raise capital in public or private markets. While raw materials...