In a surprising turn of events, the Securities and Exchange Commission (SEC) has dropped its charges against Ethereum developer Consensys. This decision has been hailed as a major victory for the altcoin and the entire cryptocurrency industry. However, Ripple’s Chief Legal Officer, Stuart Alderoty, has raised concerns about the SEC’s failure to address important questions regarding the classification of Ether as a security.
Earlier this week, Consensys announced that the SEC’s Enforcement Division had informed them that the investigation into Ethereum2.0 would be closed. The company described this development as a “momentous” milestone for the industry. However, some members of the XRP community were outraged by what they saw as the SEC’s arbitrary decision-making in the crypto space.
Alderoty, who has been at the forefront of Ripple’s defense against allegations of selling unregistered securities in XRP, has joined the chorus of voices criticizing the SEC for its perceived incompetence. He questioned whether the SEC’s decision implies that Consensys’ offers and sales of ETH are not considered securities transactions, and whether ETH itself is exempt from being classified as a security. Alderoty also raised concerns about the status of MetaMask and staking, urging clarity from the agency.
Alderoty is not alone in his criticism of the SEC and its chairman, Gary Gensler. Many leaders in the cryptocurrency industry, including Joe Lubin, the founder of Consensys and a co-founder of Ethereum, have voiced their dissatisfaction with the SEC’s approach. Lubin believes that the recent developments are not enough and that there is still a need for clear and fair regulations that foster innovation.
Even members of the Biden administration have expressed concerns about Gensler’s anti-crypto stance, fearing that it could have negative consequences for the Democratic presidential candidate. Billionaire Mark Cuban has revealed that he has been in discussions with legislators about the issue, highlighting the ongoing problem of Gensler’s activities in the crypto space.
The industry’s opposition to the SEC and Gensler has had some impact, as the agency appears to be pulling back in certain areas. As reported today, the SEC is leaning towards not appealing the ruling in the Ripple case. However, XRP’s price has dipped by 1.7% in the past day, reflecting the broader market trend of a slight decline after recent gains.
In conclusion, while the SEC dropping charges against Consensys is a significant development, there are still lingering questions about the classification of Ether as a security. The opposition to the SEC and Gensler’s approach continues to grow within the crypto industry, and it remains to be seen how these issues will be resolved in the future.