SEC And Gary Gensler Believed Ether Was A Security For At Least A Year, New Court Docs Reveal
The United States Securities and Exchange Commission (SEC) and its Chair Gary Gensler appear to have believed Ether (ETH) was a security for at least a year-long period, according to Monday findings.
According to a complaint made by Consensys Software Inc., the SEC Director of Enforcement Gurbir Grewal launched an investigation into “Ethereum 2.0” on March 28, 2023, over “possible offers and sales, since at least 2018, of “certain securities, including, but not limited to ETH, as to which no registration statement was or is in effect … and for which no exemption was or is available.”
The filing seemingly contradicts the federal agency’s prior stance on ETH, which included approving ETH Future ETFs in October 2023.
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Some folks are confused, as to why the SEC "Eth is a security timeline" and the "Futures ETF" is bad for the SEC.
Here's a quick breakdown of why it paints Gensler into a corner:
— Adam Cochran (adamscochran.eth) (@adamscochran) April 29, 2024
Gensler, who has previously stayed quiet over the ETH’s classification status, has long faced scrutiny for the agency’s regulation-by-enforcement approach.
Most notably, in June 2028, the SEC’s then-Director of Corporation Finance, Bill Hinman, gave an infamous speech alleging that ETH was not a security.
“The SEC staff has communicated to Consensys that the agency is investigating whether Consensys’ current offers and sales of ETH — transactions carried out from its own holdings as part of its normal treasury operations — are securities transactions,” the filing read. “And the staff recently requested that Consensys make a “proffer” to the SEC to state why Consensys believes its ETH sales are not securities transactions.”
Prior to the news of Monday’s court filings,
