Ethereum under the SEC's Sight: History and Development of the Case
Date: 2024-04-30 Author: Henry Casey Categories: IN WORLD
New documents filed as part of the case against the SEC reveal that on March 28, 2023, the US Securities and Exchange Commission began an investigation into Ethereum's status as a security. Consensys and several other companies received subpoenas.
SEC Order and Company Response
The SEC's head of enforcement, Gurbir Grewal, signed a formal order to launch an investigation into "Ethereum 2.0", giving staff the authority to investigate and subpoena Ethereum market participants.
Determining Ethereum Status
In March 2023, SEC Chairman Gary Gensler was unable to provide a precise definition of Ethereum's status, but later argued that it was classified as a security.
Lawsuit from Consensys
After receiving a "Wells Notice" regarding MetaMask's unregistered brokerage activities, Consensys filed a lawsuit against the SEC. The decision was driven by concerns about regulatory uncertainty surrounding cryptocurrency.
Ethereum-ETF Solution
The SEC is expected to make a decision on applications for spot Ethereum ETFs in May 2024. Experts express the opinion that the regulator may reject them due to the uncertainty of Ethereum’s status as an underlying asset.
