SEC, Gensler believed Ether was a security, the lawsuit revealed.
Key Takeaways
- According to court filings, the SEC may have considered Ether an “unregistered security” since last year under the leadership of Chairman Gary Gensler.
- In 2023, the SEC launched ‘Ethereum 2.0’, investigating the state of Ethereum.
- The SEC will potentially delay the approval of Ether-based ETFs in the US.
According to court documents filed by Consensys against the Securities and Exchange Commission (SEC): The agency, led by Chairman Gary Gensler, may have considered Ether (ETH) an “unregistered security” since last year.
This lawsuit was filed in Texas federal court on April 25. Wells notice from SEC.
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According to the document, Gurbir Grewal, head of the SEC’s Division of Enforcement, said: Approved “Ethereum 2.0” – Investigating the State of Cryptocurrency – March 28, 2023.
The investigation reportedly stemmed from an SEC investigation. Concerns started in 2018, Implies possible unauthorized sale and offering of Ether.
This investigation allowed the SEC to: Traders and organizations associated with ETH will be subpoenaed and investigated. It is reported that he was instructed to keep the details of the investigation secret.
These uncertainties are significant. Impact on approval of Ethereum-based exchange traded funds (ETFs) In the US, delays are likely to occur due to lack of SEC involvement.
Interestingly, The SEC Chairman’s current position contradicts his previous beliefs. In 2018, Gensler claimed that more than 70% of the cryptocurrency market, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, is not a security.
Nonetheless, the scrutiny and debate over Ether’s classification could have implications for the cryptocurrency regulatory framework in the United States.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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