(Bloomberg) -- Ether trades are not subject to federal securities laws, according to a top official at the U.S. Securities and Exchange Commission.

“Based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions,” William Hinman, who leads the SEC’s corporation finance unit, said in a Thursday speech in San Francisco.

To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net

To contact the editor responsible for this story: Gregory Mott at gmott1@bloomberg.net

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