Ethereum ETF Approval Reveals SEC Troubles: Consensys

The approval of spot ether (ETH) exchange-traded funds (ETFs) in the United States reveals the problematic approach that the United States Securities and Exchange Commission (SEC) has on digital assets.

This is stated by Consensys, the Ethereum development company, which reacted to the approval of these investment vehicles on May 23, a milestone that occurred after several months of uncertainty.

In an official statement released on its blog and social media, Consensys said it welcomes the SEC’s decision and calls it “a step in the right direction.”

However, he considers that the “last minute” approval of the ETH ETFs once again demonstrates the “problematic approach ad hoc of the SEC towards digital assets.” That way, They question the regulator’s actions against the industry, as well as the confusion it has generated.

Indeed, the SEC waited until the last moment to finally approve Ethereum ETFs. They did it on May 23, the deadline and just around the established closing time when it was due. the verdict of the regulator is known.

In the midst of uncertainty

The approval is given in a context of uncertainty, remembering that, for the president of that entity, Gary Gensler, all crypto assets, with the exception of bitcoin (BTC), are securities.

Last month, it was shown that Gary Gensler is convinced that Ethereum (ETH) is considered a security or value. In his role at the SEC, he has started a campaign this year to recognize Ether as such.

As Consensys lays out, by approving ETH ETFs, Gensler’s SEC suggests it considers the market’s second-largest digital asset It is a commodity or basic product (commodity) and not a security. Therefore, they have no jurisdiction over that cryptocurrency.

This is explained by the company founded by the co-creator of Ethereum, Joseph Lubin. He maintains that, with his decision, the US securities regulator clarifies ETH characterizationwhich has been debated for months.

In this way, for Consensys, the SEC brings ETH to the same level as bitcoin, which is the largest digital asset on the market and which for years has been recognized by the US authorities as a commodity, thus avoiding all the judicial burden that has arisen. on the rest of the crypto assets.

Last April, that company urged the regulator to approve ETH ETFs because they “outperform” the security of bitcoin. At that time, Consensys indicated that the SEC had “unfounded arguments” for not approving these financial products.

The litigation between Consensys and the SEC continues

Consensys is in the middle of litigation with the US Securities and Exchange Commission. In late April, the company took legal action against the regulator after receiving a Wells Notice from the SEC, an announcement preceding an enforcement action.

According to Consensys, the SEC accuses them of violating securities laws through one of their products, a wallet. This is MetaMask, one of the main Ethereum wallets on the market. This is a narrative that that regulator has followed against other companies in the sector in the past.

Consensys stated at the time that MetaMask is not a broker-dealer and is only an interface, as client assets are not actually stored there and no value transaction functions are executed.

In that order of ideas, the Ethereum company stated that even with the approval of ETH’s ETH and the implicit characterization of that asset as a commodity, They will continue to “fight for definitive regulatory clarity” where appropriate.

They also mentioned the “tremendous bipartisan effort” of the United States Congress, which this week was the protagonist of a historic event. For the first time, the Lower House approved a bill aimed at regulating bitcoin and cryptocurrencies, as reported by CriptoNoticias.