2024-04-30
The Securities and Exchange Commission (SEC) and its chairman, Gary Gensler, have reportedly held the belief for at least a year that ethereum, the second largest cryptocurrency, may be engaging in unregistered security trading that is not in compliance with current federal regulations.
This information has come to light following the filing of an unredacted complaint against the SEC by Consensys, a software company associated with ethereum.
Consensys initially filed a redacted version of the lawsuit in a Texas federal court last Thursday, in response to a Wells notice it received from the SEC.
The Wells notice outlined the agency's intention to sue Consensys for its failure to adhere to federal securities laws.
The newly filed documents, submitted on Monday morning, have not yet been reported.
These documents offer valuable insight into the SEC's thought process regarding ethereum's alleged status as a security.
They also address the significant question surrounding the regulatory status of ethereum, a cryptocurrency held by millions of investors within the $2 trillion digital asset industry.
It is important to note that formal investigations such as this are typically an early step in the SEC's process and may not necessarily reflect the broader views of the Commission.
As of now, an SEC spokesperson has declined to comment on the matter.
