A new report from Fox Business suggests that SEC Chairman Gary Gensler believes Ethereum (ETH) is a security over the past 12 months. This contrasts with the US Securities and Exchange Commission’s (SEC) previous positions on Ethereum’s status as a commodity.

According to the report, a new court document filed yesterday could provide further insight into the timeframe behind the Commission’s alleged grouping of Ethereum as a security. If the newly launched studies indicate that the regulator sees Ethereum as a security, this contradicts previous statements from the financial regulator. The report reads as follows:

“The new documents, submitted on Monday morning, have yet to be reported. They provide insight into the timeline behind the SEC’s thinking on Ethereum’s purported status as a security, and shed light on what has been perhaps the biggest question facing the $2 trillion digital asset industry over the regulatory status of a cryptocurrency owned by millions of investors.”

Ethereum has been under investigation since 2023

A recent report shows that the US Securities and Exchange Commission (SEC) has been investigating Ethereum for more than a year. It has reportedly been trying to determine since 2023 whether the current number two cryptocurrency is a security or not.

The spotlight on Ethereum got a little brighter last week when Consensys, the development company behind Ethereum, decided they had had enough and took the SEC to court. They’re pretty miffed about the way the SEC is handling things, especially since the SEC has been sniffing around since early 2023.

The whole mess started to fall apart when the SEC, under the keen eye of Enforcement Division Director Gurbir Grewal, greenlighted an investigation into Ethereum buying and selling in March 2023. They didn’t just stop there; they threw out subpoenas and collected sworn testimony.

SEC Chairman Gary Gensler played coy when pressed during congressional testimony, dodging the question of whether Ethereum was a commodity or a security. But behind the scenes, the SEC had already cranked up their investigative machinery and considered Ethereum a security, which they didn’t shout from the rooftops.

How this could affect the entire crypto market

ETH is the second largest asset by market capitalization, while the Ethereum blockchain hosts the largest number of smart contracts and decentralized applications. With DeFi numbers rising, a move by the SEC could cripple the sector’s growth. The effects on the price could be huge if bulls set their sights on retesting the $4,000 mark in the next bull run.

All in all, the number two cryptocurrency is heading for an exciting time. With the SEC likely to classify it as a security and the possible disapproval or approval from the same regulator of spot Ethereum ETFs, the market is eagerly awaiting the next developments.

Source: https://cryptobenelux.com/2024/04/30/breaking-sec-voorzitter-ziet-ethereum-als-een-effect/

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