Ethereum

Ethereum 2.0

Gary

The US Securities and Exchange Commission (SEC) is struggling to provide clear regulatory guidance to the industry with its confused stance over the trading of digital assets. Court filings linked to the <a href="https://news.todayq.com/will-consensys-comments-help-in-getting-ether-etf-approval/" rel="noopener noreferrer nofollow">Consensys lawsuit</a> show that the SEC Committee approved the law enforcement investigation into Ethereum 2.0 on April 13, 2023. Court filings reveal SEC assertion 
According to a report, SEC chair Gary Gensler hinted the Proof-of-stake (PoS) tokens may trigger the Howey Test. However, the commission allegedly asked Consensys to give more details linked to its role in the Ethereum to PoS.
The court filings revealed a year long investigation done by the US SEC into Ethereum’s potential status as an unregistered security. This directly sheds light on the regulatory uncertainty building around the world’s second largest crypto. It also provides insights into the SEC’s internal discussions with actions linked to Ether’s classification.
Documents show that the SEC initiated a formal investigation into Ethereum’s status as a security on March 28, 2023. This probe comes under the approval of the head of the SEC’s Division of Enforcement Gurbir Grewal. It added that the subpoena recipients were reportedly instructed to maintain strict confidentiality linked to the investigation. This highlights the sensitivity of the matter.&nbsp;
The investigation called “Ethereum 2.0”, aimed to inspect possible offers and sales of securities. This was linked to Ethereum since at least 2018.&nbsp;
It suggests that if classified as a security, Ether’s regulatory status would riddle with the prior SEC guidance. This includes statements made by former SEC Chairman Jay Clayton and Director of Corporation Finance Bill Hinman. They asserted that Ethereum, like Bitcoin, was not a security. Will it happen? 
The timing of the investigation comes in line with Gensler’s appearance before the House Financial Services Committee. During this testimony, he evaded questions about Ethereum’s regulatory status.
However, Gensler’s reluctance had already fueled speculations within the crypto industry. This became particularly important with Ethereum’s transition to a “proof-of-stake” consensus mechanism.
Ether’s price surged following Hinman’s 2018 speech. He suggested that the commission would not regulate ETH or Bitcoin due to their decentralized nature. However, the second largest crypto’s transition to a new consensus mechanism pushed concerns about its similarity to a security.
As of now, ETH is struggling with the increased selling pressure. It’s price had dropped by over 10% in the last 30 days. The biggest altcoin is trading at an average price of $3,173, at the press time.

SEC chair was assured that Ether was security for at least a year

Todayq News

Other articles published on Apr 29, 2024

Top Crypto Partnerships – April Week 4

Ripple CTO and Cardano Creator Engage in Heated Debate About XRP

New Chinese AI Robot: Astribot S1 Can Perform Household Chores

South Africa’s Crypto Future Secure Despite Election Uncertainty

Russian crypto exchange Beribit freezes withdrawals, offers chocolate instead

Web3 Gaming Startup, GFAL Raises $3.2M Seed Round

Join our free newsletter for daily crypto updates!