Ripple's Top Lawyer Questions SEC's Ethereum U-Turn
Many questions remain unanswered after the SEC suddenly dropped its probe into Ethereum.
What's Going On?
Stuart Alderoty, Ripple's top legal expert, still has some questions after the U.S. Securities and Exchange Commission (SEC) unexpectedly ended its investigation into Ethereum. While Alderoty called this a "big win" for Ethereum studio Consensys, he's still unsure if this means that the company's offers and sales of the Ether token are not considered securities. Moreover, the legal status of Ether itself largely remains in a grey area.
SEC's Silence on Ether's Legal Status
SEC Chair Gary Gensler has repeatedly refused to clarify whether the Ether token can be considered an unregistered security. Alderoty is now wondering what Gensler would say now that the agency has suddenly ended its probe into Consensys.
The Lawsuit Saga
In April, Ethereum backer Consensys filed a lawsuit against the SEC after receiving a Wells notice of pending enforcement action. Consensys accused the SEC of hurting market participants and developers by attempting to label Ether as a security. The studio also defended its popular MetaMask wallet, denying the SEC's claims that it had violated securities laws by acting as an unregistered broker-dealer.
A Sudden Reversal
In a surprising turn of events, the SEC decided not to recommend any enforcement action, sending the price of the Ether token higher earlier this week. However, the status of Metamask and staking remains unclear, according to Alderoty.
Consensys CEO Speaks Out
Consensys CEO Joseph Lubin hailed the decision as a "victory" for Ethereum and the broader cryptocurrency community. "It's a testament to the strength of decentralized technology and the unyielding spirit of innovation that drives our builders," he said. At the same time, he emphasized that the fight for a supportive regulatory environment was far from over.
Conclusion
While the SEC's decision to drop its probe is seen as a victory for Ethereum, many questions remain. The crypto community continues to wait for clear regulatory guidelines to ensure that innovative technologies can flourish without undue legal burdens.
