tl;dr
The U.S. Securities and Exchange Commission (SEC) has internally considered Ethereum to be a security for over a year, according to a lawsuit filed by Consensys against the SEC. The SEC's Director of the Division of Enforcement issued an internal Formal Order in March 2023, authorizing an investigat...
The U.S. Securities and Exchange Commission (SEC) has internally considered Ethereum to be a security for over a year, according to a lawsuit filed by Consensys against the SEC. The SEC's Director of the Division of Enforcement issued an internal Formal Order in March 2023, authorizing an investigation into "Ethereum 2.0" and explicitly referring to Ethereum as a security.
SEC scrutiny escalated after Ethereum's transition to an energy-efficient proof of stake, leading to subpoenas to entities involved with Ethereum. Consensys has filed a preemptive lawsuit against the SEC, challenging Ethereum's security classification.
Ethereum, the second largest cryptocurrency, has faced SEC scrutiny following its transition to proof of stake consensus mechanism. The SEC's decision not to comment on the matter has left the industry in anticipation.
The SEC's increased offensive against entities involved with Ethereum, including subpoenas to the Ethereum Foundation and American crypto companies, has led to escalating tensions. Consensys' lawsuit reflects the ongoing debate over Ethereum's classification as a security.
This development has implications for the cryptocurrency market, especially regarding the integration of Ethereum into the American economy.
Editor's note: This summary reflects the SEC's decision not to comment on the lawsuit and highlights the key events leading to the current situation.
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