Ethereum

Patrick

Chair

Gary

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According to an unredacted version of Consensys's lawsuit against the U.S. Securities and Exchange Commission, SEC Chair Gary Gensler&nbsp;<a href="https://www.foxbusiness.com/markets/new-court-filings-show-sec-chair-gensler-believed-ethereum-was-security-for-at-least-year" rel="noopener noreferrer nofollow">viewed</a> Ethereum, the second-biggest cryptocurrency, as an unregistered security a year ago.&nbsp;
Gurbir Grewal, who is currently serving as the Director of the Division of Enforcement for the SEC, greenlit a formal probe into Ethereum's security status back in March 2023. The investigation involved sending subpoenas to various individuals and entities that have dealt with the Ethereum token.&nbsp;
The Fox Business report says that the SEC was adamant about making sure that the investigation remained a secret, with one source comparing their experience to being forced to sign a nondisclosure agreement. The parties that received the subpoenas were supposed to remain mum about them if they wanted to get further information about the probe.&nbsp;&nbsp;
Unsurprisingly, Consensus, the key Ethereum backer, was among the firms that had to deal with subpoenas from the SEC.&nbsp;&nbsp;
After filing its lawsuit against the SEC, Consensys revealed that it had received a Wells notice from the regulator earlier this April.&nbsp;
As <a href="https://u.today/sec-chair-dodges-question-about-regulatory-status-of-bitcoin-and-ether" rel="noopener noreferrer nofollow">reported by U.Today</a>, SEC Chair Gary Gensler has repeatedly refused to answer whether or not Ethereum is an unregistered security. He also dodged this question from Congressman Patrick McHenry during a congressional hearing back in April 2023. Notably, the SEC voted to approve the investigation into Ethereum just days after the hearing took place.&nbsp;
The SEC's hostile stance toward Ethereum does not come as a surprise. In a recent interview with New York Magazine, the SEC boss&nbsp;<a href="https://u.today/sec-boss-hints-that-ethereum-eth-is-a-security" rel="noopener noreferrer nofollow">hinted</a> that the token could be classified as an unregistered security.&nbsp;
Gensler previously recognized Ether as a non-security during his MIT days, but Ethereum's long-awaited transition to the proof-of-stake consensus mechanism likely dramatically altered his view.&nbsp;
However, ETF analyst Nate Geraci seems to be confused by the SEC's approval of Ethereum futures ETFs.&nbsp; "Why did they approve eth futures ETFs then? Seems like that was implicit acceptance that eth = non-security commodity," he&nbsp;<a href="https://twitter.com/NateGeraci/status/1784935731246289269" rel="noopener noreferrer nofollow">wrote</a> on the X social media platform.&nbsp;

SEC Boss Has Long Viewed Ethereum as a Security, New Filing Reveals

U_Today

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