The SEC warnings on DAO and ICO tokens take produced relief in the cryptocurrency industry, Ethereum (ETH) staying steady.

As a study and accompanying press release, Tuesday stated that DAO tokens "were securities," those hoping for clarity on the condition of ICOs found that securities laws "may" apply to them.

"As discussed in the Written report, virtual coins or tokens may exist securities and subject to the federal securities laws," the SEC wrote in the release.

The sheer number of ICOs and associated majuscule they have raised in recent months has led to speculation regulators would soon step in and disrupt the market.

Like regulation of cryptocurrency itself, establishing a legal landscape for token sales would serve to encourage legitimate schemes' growth while pushing out bad actors, some say.

"I think it brings legitimacy to an environment that'south been running a bit as well wild lately," entrepreneur Sam Rusani told Inc.

Other reactions, such every bit those of Cornell professor Emin Gun Sirer and Coinbase co-founder Fred Ehrsam, focused on the SEC's decision non to blanket-label all tokens every bit securities.

ARK Blockchain'due south Chris Burniske meanwhile noted that Ethereum's price had withstood concerns almost the multiple tokens built on its Blockchain.

ETH has lost around nine per centum in the past 24 hours, nonetheless taking information technology beneath $200 in one case again, information from Coinmarketcap shows.

The fall is minimal, however, compared to that seen earlier this calendar month when the altcoin touched $140 in a bout of volatility which affected cryptocurrencies beyond the board.