Things to know about Ethereum development This article Tobocqa.com will provide an overview of Ethereum’s rise and growth. From its launch to its introduction, Ethereum has gone through a myriad of events and laws enacted from international government agencies. The following 7 contents will open you a worldview from the birth to the comprehensive development to the present day of Ethereum. The advent of Ethereum In 2013, the concept of Ethereum was first born thanks to a description page of Vitalik Buterin. In 2014, this concept was officially announced at the North American Bitcoin Conference in Miami. Until 2015, Ethereum was officially launched. However, in 2016, the Decentralized Autonomous Organization (DAO) was hacked, leaving investors with huge losses of up to $ 50 million. In an attempt to revive, the majority of Ethereum communities decided to favor a Hard ford in order to invalidate transactions. This leads to a split in the Ether. The proponents of ford use Ethereum (ETH) while the majority of the old blockchain goers use Ethereum Classic (ETC). To this day, both ETH and ETC are still being used. How was Ethereum recognized? After years of development, Ethereum officially saw its first growth in 2017 when a successful ICO and simultaneously launched Enterpise Ethereum Aliiance – the organization that develops the Blockchain specifications. On July 25, 2017, the Securities and Exchange Commission (SEC) released an investigative report on the DAO and concluded that all cryptocurrencies must be comply with regulations. At the same time, this organization also officially released the Investor Newsletter about ICO to help investors be aware of the potential risks of ICO. Not long after that, in October 2017, the CFTC stated that the digital announcement coding could be either a commodity or a derivative contract, which depends on the circumstances. At the same time, the Uniform Law Commission issued the “Unified Law on the Virtual Currency Business Act” that stipulates that users can use digital currencies to buy goods and services. digital service. FinCEN also requires cryptocurrency exchanges to be registered and in compliance with the regulations. The IRS also introduced a tax classification for digital currencies that adds complexity to Ethereum’s circulation laws. Strict regulation during SEC’s ICO Since the release of the Breakthrough DAO Report 2017, the SEC has executed more than 30 actions against ICO issuers as well as numerous requests for information related to ICOs. On November 8, 2018, the Foundation settled the charges against Zachary Coburn (the founder of EtherDelta), who violated federal securities laws by operating an unsigned national stock exchange. sign. November 16, 2018. The SEC explained that both CarrierEQ Inc. (Airfox) and Paragon Coin Inc. conducted ICOs in 2017, and the organization warned that ICOs could be a new kind of security. Airfox, and Paragon are both companies with huge amounts of digital assets. Starting out in Boston (USA), Airfox digital assets have reached 15 USD, while Paragon is about 12 USD. Both companies negotiated and decided to register tokens as securities with the SEC. The Commission’s chief administrative officer, Stephanie Avakian, said: “The SEC has clear regulation that companies issuing securities through an ICO must comply with applicable laws and the rules governing the registration of securities. “. Most recently, in September 2019, ICOBox and its founder were sued by the Commission for not having registered regarding the platform’s activities to conduct a securities transaction. What does the Howey test reveal? As a formula created by the US Supreme Court, the Howey test is used to determine whether a transaction qualifies as an “investment contract” under federal securities law. The Howey Test originated in a 1946 Supreme Court lawsuit v. WJ Howey Co. The test itself consists of 4 parts, one is having an investment, the second is in a business, the third is reasonable profit expectations and finally the efforts of the promoter or a third party. Ethereum is not a security On June 14, 2018, the Chief Financial Officer of the SEC Group, Mr. William Hinman, declared that Ethereum is not a security. According to him, if the token or coin network operates sufficiently decentralized, the assets are not necessarily an investment contract because the buyer will not expect someone to perform essential management functions. Specifically, Mr. Hinman stated that the Ethereum network has a decentralized structure, and as a result, Ether’s current incentives and sales are not securities transactions. Citing the reason behind his statement, Hinman made it clear that the economics of the transaction are always determined by legal analysis, not eye contact. The first time, the SEC passed a registry that did not fully satisfy the Howey test On July 25, 2019, the letter of reply to the Pocketful of Quarters from the SEC marked another step forward in regulation for Ethereum as well as ERC-20 tokens. The SEC has granted “inaction” relief to the Pocketful of Quarters (PoQ) for its ERC-20 token Quarters. This means that the Commission will not take enforcement action based on the specific facts and circumstances outlined in the request. This is the first token to be built according to the ERC-20 standard to receive regulatory approval. PoQ is a blockchain startup designed to create a popular game token that can be redeemed on any video game platform. In particular, PoQ is run by father and son George Weiksner (12 years old) – chief executive and Michael Weiksner – chief technology officer. PoQ explained that gamers – the company’s investors have no expectation of reasonable returns, which goes against the content of the Howey test and asks the SEC to consider the case of the company. Approving the case of PoQ, the Commission sent a green letter representing the organization’s consent to PoQ’s token issuance. Ethereum’s development advantage over a complex legal systemSo far, the US government has not exercised its constitutional right to regulate blockchain technology and cryptocurrencies. Therefore, the states of this country are still free to design and enforce their own laws such as Arirona, Vermont, Delwar… Along with that, cryptocurrency regulations also vary among federal institutions. For example, the SEC treats digital currencies as securities if they pass the Howey test, while the CFTC treats digital currencies as commodities and is taxed by the IRS as assets. Ethereum is an exception, however, and Hinman’s proofs and PoQ’s green letter clarify the regulation and degree of freedom required to develop Ethereum. Thanks to this, Ethereum has also become the choice of major brands like Amazon, Coinbase, Fidelity, Google, Microsoft and Samsung in many different applications. Google is also promoting the construction of decentralized applications (Dapps) on the Ethereum blockchain. At the same time, Microsoft is partnering with the Enterprise Ethereum Alliance to create crypto tokens, and ConsenSys to provide the Ethereum blockchain as a service on Microsoft Azure. With the accompanying regulatory clarity backed by institutions, Ethereum is judged by experts as having limitless potential for growth in the cryptocurrency sector.