Court Documents Reveal SEC and Gary Gensler Viewed Ether as a Security for a Year

SEC Considers Ethereum (ETH) as a Security

A recent investigation by the United States Securities and Exchange Commission (SEC) and its Chair Gary Gensler suggests that Ether (ETH) may be classified as a security.

Background of the Investigation

Consensys Software Inc. filed a complaint leading to an investigation into “Ethereum 2.0” on March 28, 2023. The SEC Director of Enforcement initiated this investigation over potential unregistered securities sales, including ETH, dating back to 2018.

Contradictory Stance

This development contradicts the SEC’s previous approval of ETH Future ETFs in October 2023, raising questions about the agency’s stance on ETH.

Gensler’s Response

Gary Gensler, previously silent on ETH’s classification, faces criticism for the SEC’s enforcement-focused regulatory approach.

Legal Action by Consensys

Following the investigation, Consensys has taken legal action against the SEC to challenge the classification of ETH as a security. The company aims to protect Ethereum’s status as a vital blockchain platform.

Industry Impact

Reports indicate that companies associated with the Ethereum Foundation are under scrutiny, with potential legal actions looming in the near future.