In a recent lawsuit, Consensys revealed insights into the SEC’s perspective on Ether. The SEC, led by Chairman Gary Gensler, considered Ether as a security, according to a report by Eleanor Terret from Fox Business.
Documents filed by Consensys on April 29 indicate that the SEC and Gensler had this belief for about a year.
Consensys Responds
Consensys filed an unredacted complaint against the SEC on April 25 in a Texas federal court, responding to a Wells notice from the regulator.
On March 28, 2023, the SEC’s Division of Enforcement approved an investigation into Ether’s security status, dubbed “Ethereum 2.0.” The investigation allowed the SEC to issue subpoenas to individuals and entities involved in buying and selling Ether.
Subpoena recipients were instructed to keep details of the investigation confidential. If Ether is deemed a security by Gensler’s SEC, it would go against previous guidance from the SEC.
The five-member Commission approved the “Ethereum 2.0” investigation just days before Gensler’s appearance before the House Financial Services Committee.
Uncertainty for Ether ETF
News of the investigation surfaces amidst speculation that the SEC may delay the approval of a spot Ether exchange-traded fund (ETF).
Bloomberg ETF analyst Eric Balchunas suggests that Gensler’s stance on Ether could influence the decision-making process, especially considering his previous lack of clarity on the matter.
