Stuart Alderoty, Ripple’s chief legal thinker, still has some questions left after the US Securities and Exchange Commission unexpectedly dropped its investigation into Ethereum.
Stuart Alderoty, Ripple’s chief legal thinker, still has some questions left after the US Securities and Exchange Commission unexpectedly dropped its investigation into Ethereum.
Although Alderoty described the SEC’s decision as a “huge victory” for Ethereum studio Consensys, he is still unsure if that means the company’s Ether token offerings and sales are not securities. Furthermore, the legal status of Ether itself remains largely in a gray area.
Alex Dovbnya
As reported by U.Today, SEC Chairman Gary Gensler has repeatedly refused to clarify whether the Ether token can be considered an unregistered security. Alderoty now wonders what Gensler’s response to such a question would be now that the agency has abruptly ended its investigation into Consensys.
In April, the Ethereum backer filed a lawsuit against the agency after Wells notified it of impending enforcement action. Consensys accused the SEC of recklessly harming 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 stockbroker.
Godfrey BenjaminIn a sudden reversal, the SEC ended up not recommending enforcement action, sending the price of the Ether token higher earlier this week.
However, according to Alderoty, Metamask’s status and bets are still unclear.
Joseph Lubin, CEO of Consensys acclaimed the decision as a “victory” for Ethereum and the broader cryptocurrency community. “It’s a testament to the power of decentralized technology and the unwavering spirit of innovation that drives our builders,” he said. At the same time, he stressed that the fight for a “favorable regulatory environment” was far from over.
