For at least a full year, Gary Gensler and the U.S. SEC have regarded Ethereum as a securities.
As per FOX BusinessConsensys (which develops Ethereum) filed a complaint unredacted against the agency when this information was made public.
The document states that the Ethereum 2.0 investigation was based on the SEC’s belief that possible offers and sales of certain securities, including but not limited to ETH, had occurred since at least 2018.
The Consensys lawsuit shows that the SEC has made multiple document requests over the past year asking for more details about the company’s role in the proof-of-stake (PoS) update and its acquisitions, holdings, and sales of Ethereum. The documents also reveal that the SEC could have believed that Ethereum sales made before the merger of 2018 were securities.
It is important to note that the word “you” means “the”. SEC’s belief that Ethereum is a security contradicts the previous guidance under the chairmanship of Jay Clayton. Additionally, in June of 2018, then-CFO Bill Hinman stated in a speech the SEC’s position that Ethereum, along with BitcoinThis is not an investment.
Even before Gensler’s testimony, the chairman’s reluctance to give a definitive answer on Ethereum’s regulatory status raised alarm bells for the crypto industry. Many speculate that Ethereum’s Merge has made the cryptocurrency more security-like than the original consensus mechanism.
Consensys initiated legal action against the SEC to keep the regulator from overseeing the Ethereum blockchain.
Consensys said its action against the SEC followed the April 10 Wells notice indicating the regulator was preparing to take enforcement action against the company regarding its MetaMask wallet services. The company emphasised that MetaMask This is not an agent or broker. “does not store clients’ digital assets or perform any transactional functions.”
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: crypto.news