New Court Documents Show SEC Chair Gary Thought Ethereum Might Be a Security

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As the US gets nearer to deciding on Ethereum (ETH) exchange-traded funds (ETFs), the argument over whether Ether is a security or a commodity has gotten more intense.

It seems like the US Securities and Exchange Commission (SEC) sees ETH as unregistered securities. Even though Ethereum’s core developers tried to switch from the energy-intensive Proof-of-Work (PoW) to the Proof-of-Stake (PoS) method last year, Chair Gary Gensler and the SEC still hold the same view.



SEC Investigates Ethereum’s Security Status

A new court filing dated March 28, 2023, reveals that Gurbir Grewal, head of the SEC‚Äôs Division of Enforcement, approved an investigation into Ethereum’s status as a security. This order allows enforcement staff to look into individuals and entities involved in buying and selling Ethereum since its beginning.

Interestingly, on April 13, 2023, the five-member Commission also approved an investigation into Ethereum 2.0. This decision came just five days before SEC Chair Gensler faced questions from the House Financial Services Committee. However, he declined to answer whether the SEC saw Ethereum as a security or a commodity.

The filings indicate that the Ethereum 2.0 investigation was initiated because the SEC believed there might have been offers and sales of Ether since at least 2018. This stance contrasts with former SEC Chairman Jay Clayton’s statement that Ethereum was not a security.

Ethereum’s Classification: Security or Commodity?

The classification of Ether as a security or a commodity holds significant implications for over 50 million American investors in Ethereum. However, Consensys firm takes the stance that Ethereum is a global computing platform rather than an investment scheme. They argue that Ethereum should not be labeled as a security but instead viewed as a commodity, a position reaffirmed by the Commodity Futures and Trading Commission (CFTC).

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Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

 

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  • SHBAZ

    A crypto enthusiast, Loves to write, Loves to explore and stay up-to-date about the latest developments in the crypto world. #Btc #Crypto #NFT

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