The US Securities and Exchange Commission, under Gary Gensler, has been closely verifying whether Ethereum comes under the security bracket from 2018 onwards.
Consensys, a blockchain software business, issued a lawsuit, which brought the SEC’s official examination of Ethereum 2.0 under its Division of Enforcement into the limelight. This exercise was initiated towards the beginning of last year.
The consent from the SEC for the close examination was received on the 13th of April last year. This provided the option for releasing subpoenas to persons, as well as business houses connected with transactions carried out on Ethereum.
The agency’s examination revolves around the probability of unlisted offerings and selling of Ethereum going as far back as 2018. This is unlike the SEC’s older direction under the ex-chairman, Jay Clayton, wherein Ethereum was not considered a security.
The agency’s view on Ether contradicts the Commodity Futures Trading Commission’s (CFTC) older bracketing of Ethereum as a commodity.
The preventive legal stand taken by Consensys challenges the SEC’s authority to consider Ethereum’s positioning.
Gary Gensler has avoided any sort of public announcement regarding the SEC’s stance on Ethereum. This is despite being questioned by the House Financial Services committee.
The SEC’s close study of Ethereum examines Ethereum’s position, and aspersions are raised regarding the future of Ethereum-oriented items, such as the probability of a spot Ether exchange-traded fund (ETF).
As per a recent release from Reuters, it is anticipated that the SEC will stop spotting Ethereum applications almost immediately.
Where the complete crypto market cap is concerned, it has slid to 3.1%, standing at $44 trillion, as per CoinGecko. On the other hand, Ether dropped by almost 5%, standing at $3,171.
