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### Bitcoin confirmed not a Security and safe investment
Welcome to the end of the week and with it some good news for [crypto currency](https://leofinance.io/@leoglossary/cryptocurrency) with much of the current [Securities and Exchange Commission (SEC)](https://leofinance.io/@leoglossary/leoglossary-securities-and-exchange-commission-sec) findings providing the market some valuable insights when it comes to what is considered a security and what isn't in the current market. 

While the information released slowly is causing a sideways market and cause [Alt Coins](https://leofinance.io/@leoglossary/leoglossary-altcoin) to be impacted the most, it is providing clarity for the worlds number 1 Digital asset, [Bitcoin](https://leofinance.io/@leoglossary/leoglossary-bitcoin).

There have been long debates on what Bitcoin actually is either a security or not, which once a position is landed on would provide much needed confidence in the market and set out what regulations and legislation applies to the token. 

This would than enable investment to increase and a lot more promotion of digital assets into the future, but now with the legal cases at hand we're starting to get a better picture of what is and isn't a security. Bitcoin has finally had an informal position on it by the SEC and here's why you should be excited. 

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### Bitcoin Not a Security
We recently shared [news ](https://peakd.com/hive-167922/@melbourneswest/xrp-faces-hurdle-ftx-tries) in a previous article that showcased the discussions held between Coinbase and The Securities and Exchange Commission prior to their lodgment of legal proceedings for trading securities. 

In it, the SEC requested Coinbase to cease trading all digital assets except Bitcoin as the SEC perceived all other digital assets to be securities except Bitcoin. Coinbase sought clarification on how the SEC came to that conclusions but the SEC refused to do so. Had Coinbase followed the SEC's direction it would have destroyed 99.9% of the US Crypto market. 

[Ethereum](https://leofinance.io/@leoglossary/leoglossary-ethereum-virtual-machine-evm) also appears to be a security in the eyes of the SEC if we believe the allegations raised by Coinbase. This puts progress in a bit of a tight spot especially when it comes to [Central Bank Digital Currencies (CBDCs)](https://leofinance.io/@leoglossary/leoglossary-central-bank-digital-currency-cbdc) which a large portion of banks have been developing on the Ethereum network. 

Coinbase instead chose to continue it's legal battle in the courts against the SEC and are continuing to raise their concerns with the SEC's position and are hopeful to win their case. 

But if true, these discussions provide some market clarity outside of a court judgement and one we can be a little more confident in. 

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### The SEC has a position on Bitcoin 
This now provides an insight on what the SEC does and doesn't deem a security and that we can be certain if the correspondence and allegations that Coinbase raise are true, than Bitcoin is not a security and can be traded on and speculated against. 

This further provides some more clarity or possible clarity on similar tokens such as Litecoin which is a fork of Bitcoin and is pretty much the same concept or same digital asset. If Bitcoin isn't a security one would think that application would also flow onto litecoin. 

although the SEC didn't seek an exemption for Litecoin so perhaps the SEC has not provided an entire overview of the digital sector but if it is to exempt Bitcoin, then one would think the exemption would apply to the type of blockchain and decentralisation mechanism that is applied to the digital asset. 

 The CEO of Coinbase [has been vocal on what has been occurring](https://www.forbes.com/sites/digital-assets/2023/08/01/crypto-price-armageddon-coinbase-ceo-reveals-a-stark-warning-that-could-hit-bitcoin-ethereum-bnb-xrp-cardano-dogecoin-solana-polygon-tron-and-litecoin/?sh=667686815b83) and is suggesting that the US came close to Crypto Armageddon in relation to the SEC's demands and it is why he has put his foot down to get a judgement. 

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### Legal Judgements not easy 
Legal battles are not easy to fight as they can be costly, lengthy and stressful periods that drain the resources and everyones time especially when fighting against government agencies. 

It would have been a lot easier for Coinbase CEO to walk away, cash out and retire on a island somewhere but he has decided to take a stand and get some clarity on what is and isn't a security. Given now that we may know the SEC's position on Bitcoin we are already one step closer to an answer and eagerly await legal proceedings and outcomes. 

**What are your thoughts of the current market and what do you think the likely outcome of the cases will be? do you think there will be a win for investors or a loss?**

*image sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services*