In a significant development, the SEC has dropped its charges against Consensys, a prominent Ethereum developer and incubator. This news has been celebrated as a victory for the altcoin and the overall industry. However, Ripple’s Chief Legal Officer, Stuart Alderoty, believes that there are still important questions that need to be addressed. One such question is whether Ether, the cryptocurrency associated with Ethereum, should be classified as a security. Despite the SEC’s decision to drop the charges, Alderoty argues that this issue remains unresolved.
Consensys recently announced that the SEC’s Enforcement Division had informed them that the investigation into Ethereum2.0 would be closed. The company hailed this as a pivotal moment for the industry. However, some members of the XRP community were unhappy with what they perceived 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, criticized the SEC for its perceived incompetence. He raised several important questions regarding the SEC’s stance on Consensys and Ethereum. Alderoty asked whether the SEC’s decision implies that Consensys’ offers and sales of Ether are not considered securities transactions, and whether Ether itself is exempt from being classified as a security. He also questioned the status of Consensys wallet MetaMask and the issue of staking.
Alderoty’s criticism of the SEC is not an isolated opinion. Many leaders in the crypto industry, as well as individuals outside the industry, have voiced their concerns about the SEC and its chairman, Gary Gensler. Joe Lubin, the founder of Consensys and co-founder of Ethereum, expressed his dissatisfaction with the SEC’s decision. He believes that more needs to be done to ensure clear and fair regulations that foster innovation. Lubin emphasized the importance of advocating for a transparent and supportive regulatory environment.
Even within the Biden administration, there are those who have criticized Gensler’s anti-crypto stance, fearing that it could have negative consequences for the Democratic presidential candidate. Billionaire Mark Cuban revealed that he has been in discussions with lawmakers about the issue of Gensler’s anti-crypto activities.
The industry’s opposition to the SEC and Gensler has made an impact, as the agency has recently shown signs of pulling back. It is now leaning towards not appealing the Ripple ruling, which has been closely watched by the crypto community.
In the midst of these developments, the price of XRP, Ripple’s native cryptocurrency, has experienced a slight decline. It is currently trading at $0.4914, experiencing a 1.7% drop in the past day, following a period of significant gains earlier in the week.
