Newly unveiled court filings expose the US Securities and Exchange Commission's (SEC) stance, led by Chairman Gary Gensler, suggesting Ethereum (ETH) may be an "unregistered security" under the Howey Test, a regulatory approach widely contested by crypto advocates.
The revelation stems from ConsenSys, an Ethereum software company, filing an unredacted complaint against the SEC, as reported by Fox Business.
The disclosed court documents reveal that both Chairman Gensler and the SEC harbor the belief that Ethereum operated as an unregistered security, violating federal regulations, for at least a year.
The SEC's Division of Enforcement, headed by Gurbir Grewal, initiated a formal investigation, termed "Ethereum 2.0," on March 28, 2023. This investigation delved into individuals and entities trading ETH tokens.
Contrary to prior guidance from former SEC Chairman Jay Clayton and Director of Corporation Finance Bill Hinman, who suggested Ethereum and Bitcoin (BTC) were not securities, the SEC's stance, if upheld, would mark a significant shift in regulatory interpretation.
Chairman Gensler's hesitance to clarify Ethereum's regulatory status, particularly following its transition to a proof-of-stake consensus mechanism in September 2022, has stirred concerns within the crypto industry.
The shift in Ethereum's consensus mechanism, where validators stake their holdings, raised questions about its classification, potentially invoking the Howey Test, as suggested by Gensler.
ConsenSys's legal action against the SEC accuses the agency of an "unlawful" attempt to classify ETH as a security.
The lawsuit provides further insights into the ongoing investigation, revealing multiple document requests aimed at understanding ConsenSys' role in Ethereum's transition and its ETH-related activities.
Recent developments indicate an escalation in the SEC's scrutiny, with ConsenSys facing additional document subpoenas and a Wells notice signaling potential enforcement action for allegedly offering unregistered securities, including ETH, via its MetaMask wallet.
ETH's current price stands at $3,170, reflecting a 4% decline in the last 24 hours, amidst struggles to consolidate above $3,200.
SEC's revelation on Ethereum's past status as a security sparks uncertainty over spot Ethereum ETF approval. Consensys' complaint sheds light on Gensler's stance, paralleling Ripple case outcomes.
Edmund金色财经推出加密货币和区块链行业早报《金色早8点》第2310期，为您提供最新、最快的数字货币和区块链行业新闻。
JinseFinanceThe company cautioned that a potential reversal by the SEC of its stance, maintained since 2018, regarding Ether's classification as a security, could have dire consequences for the network, potentially stifling innovation within the US.
Catherine美国证券交易委员会表示，通过提供 MetaMask 钱包软件，Consensys 充当了未注册的证券经纪人。
JinseFinance金色财经推出加密货币和区块链行业早报《金色早8点》第2307期，为您提供最新、最快的数字货币和区块链行业新闻。
JinseFinanceSEC opens comment periods for three ether spot ETF proposals. Analysts cautious despite bitcoin ETF approval. Gensler clarifies approval not indicative of stance on other tokens. SEC examining ETH categorization as security. Deadline set for May 23 for final decisions.
Xu LinSebanyak 97 karyawan, atau 11% dari tenaga kerja, akan terpengaruh, menurut posting blog CEO.
CoindeskPerusahaan Crypto ConsenSys mengumumkan kemitraan baru dengan raksasa pembayaran PayPal untuk menciptakan cara yang nyaman bagi investor untuk membeli Ethereum (ETH).
dailyhodlLex Sokolin mengatakan bahwa setelah Penggabungan, proyek DeFi harus bersaing dengan pengembalian yang ditawarkan oleh protokol inti ETH.
Cointelegraph"Joseph Lubin adalah pemegang saham mayoritas kedua perusahaan. Transaksi tersebut merugikan pemegang saham minoritas CAG dan menguntungkan Joseph Lubin secara pribadi," kata grup tersebut.
Cointelegraph