Cryptocurrency markets have come under intense scrutiny by the SEC for a substantial period of time. The US securities regulator has been dedicating significant attention and resources to the crypto space, which has become an integral part of its operations. There are discussions on whether the SEC should evolve into a specialized crypto regulator, but current SEC Chair Gensler is hesitant to establish specific crypto-related regulations.

SEC and Ethereum (ETH)

Consensys recently filed a lawsuit against the SEC, drawing attention to the regulator's actions towards Ethereum. Reports indicate that the SEC and Gensler have viewed Ethereum as a security for an extended period. Court documents from Consensys revealed that the SEC considers Ethereum's investment contract as a security, implicating services provided by MetaMask as unregistered.

Ethereum Case

The SEC, under Enforcement Division Director Gurbir Grewal, initiated an investigative order regarding Ethereum's status as a security on March 28, 2023. The extensive investigation, potentially labeling the Ethereum Foundation as the central entity of Ethereum, aims to analyze connections and deals associated with the altcoin. While other agencies, such as the CFTC, do not classify Ether as a security, the SEC is pushing for a different classification with the Ethereum 2.0 investigation.

Chairman Gensler's perspective on Ether's security status contradicts former Chairman Jay Clayton's opinion, highlighting disagreements within the SEC and past leadership. Balchunas, an ETF analyst from Bloomberg, points out that Gensler's recent shift in stance on Ether's security classification may impact future ETF decisions.

The original content is from COINTURK NEWS on SEC Intensifies Scrutiny on Cryptocurrency Markets