The Securities and Exchange Commission doesn’t understand cryptocurrencies, is unfair, and is out of touch with what its own commissioners are saying in public.
Holders of Ethereum’s ether token () breathed a sigh of relief last Thursday when William Hinman, the SEC’s director of corporate finance, announced at a Yahoo Finance summit that ether is not a security. Many were not just heartened by the development but surprised, since the currency had clearly been released as a way to fund operations, which those following the developing regulatory picture consider a warning sign. But at least one party with a lot riding on Ethereum’s success doesn’t seem to have been caught off guard. Coinbase, the largest U.S. exchange, appears to have been anticipating the move, leading some industry insiders to wonder just how closely the…