According to recent court filings, the chairman of the Securities and Exchange Commission, Gary Gensler, was under the opinion that Ethereum was security.
This bit of news came into the limelight following the filing of a complaint by Consensys against the SEC. This was in retaliation to the agency’s intention of suing the company for non-compliance with regulations.
This pointed towards the SEC’s assumption that Ethereum was a security, impacting the $2 trillion worth of space and potential investors. This triggered Consensys’ filing of a lawsuit.
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As per the fresh filing, Gurbir Grewal, the head of the SEC’s Division of Enforcement, gave his content to an official order of examination about Ethereum’s position in the form of security and contact persons and companies indulging in the purchase and sale of Ethereum tokens. The name of Consensys was included.
The Ethereum examination was conducted owing to the SEC’s understanding that involvement with some securities has occurred since 2018, as per the filing. That year, in June, the then Director of Corporation Finance, Bill Hinman, stated that Ethereum does not fall under the securities bracket. This pushed the price of Ethereum by 10%.
With the examination underway, the persons and companies receiving subpoenas were being sworn into secrecy to remain updated with the ongoing proceedings. Observers were attributing this to the immense impact the proceedings would have on the crypto industry, with one and all holding their breath.
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Presently, Ethereum has a market capitalization of almost $400 billion and could ruffle many feathers if it is considered a security. Gensler has kept his stoic silence all this time, making the rumor mills work overtime.
