Crypto Markets Rebound After News the U.S. SEC Will not Consider Ethereum a Security

Gains in of over 10 percent in some coins are a welcome respite for investors after crypto markets took a battering over the course of last month.

Today's gains are likely due to positive news that Ethereum will not be regulated as a security under U.S. law.

To better enjoy the rally, Bitcoin's supporters can now count among them the former Chief Strategist for the Trump administration, Steve Bannon, who, as Cointelegraph reported today, reportedly holds a "Good stake" in Bitcoin.

Recent months have seen mounting uncertainty over whether Ethereum would be considered a "Noncompliant" security for failing to register its Initial Coin Offering with the SEC back in 2014.Last week, SEC Chair Jay Clayton stated that he believes Bitcoin is also not a security, as it acts as a replacement for sovereign currencies.

Unlike Ethereum, Ripple, and virtually all ICO tokens, the suggestion that Bitcoin should be regulated as a security has never gained much traction, given that the cryptocurrency has been mined since its inception.

Crypto regulatory clarity has been forthcoming today in Asia as well, with the Thai SEC confirming that five domestic ICOs are now ready to raise funds via the country's new regulations governing cryptocurrencies that took effect May 14.Ethereum price chart from Cointelegraph's Ethereum Price Index.

Earlier today, Tom Lee of Fundstrat Global Advisors told Bloomberg that Bitcoin's recent "Gut wrenching" declines may be linked to Bitcoin Futures expirations on CBOE and CME futures.

According to Lee's analysis of six expirations since CBOE Bitcoin Futures launched, Bitcoin has fallen 18 percent on average in the 10 days preceding each expiration, with the price recovering six days later.

Although he is an outspoken Bitcoin bull, Lee also raised concerns over weak inflows into the crypto space, "More net supply" in 2018 "Amid initial coin offerings, mining rewards, and capital gains taxes," and "Slow progress" in facilitating institutional investors.

Coinbase's new index includes Bitcoin, Ethereum, Litecoin, Bitcoin Cash, as well as Ethereum Classic, whose addition to Coinbase was announced on June 11.