Sign Up on MEXC
Highlights
- Rep Tom Emmer has called out Gary Gensler's Ethereum securities categorization
- The lawmaker expressed displeasure over misleading approach
- Ethereum remains a big subject in terms of securities debate
SEC Chairman Gary Gensler’s insistent categorization of Ethereum (ETH) as security has attracted a comment from American attorney and lawmaker Thomas Emmer. The United States Representative perceives a hint of dishonesty in the lack of a clear stance on the matter.
SEC Accused of Regulatory Dishonesty
According to FOX Business reporter Eleanor Terrett, her conversation with Emmer on the recent court filing from ConsenSys led to the subject of Ethereum categorization.
Emmer pointed to the fact that the Securities and Exchange Commission (SEC) employed several means to avoid giving a clear answer to Congress on whether ETH is a security or a commodity in 2023. Therefore, it was quite unclear what the exact time frame behind the Commission’s alleged grouping of Ethereum as a security was.
This lack of clarity caused multiple entities to voice their displeasure at the time. Even the CFTC disagreed with the SEC, citing that Ethereum should fall under a commodity like Bitcoin (BTC),
However, Emmer said that newly released documents claimed the regulator’s enforcement team was very direct in their stance on Ethereum’s security status. It is worth acknowledging that these documents surfaced only a few weeks before the SEC Chair had his congressional testimony where he took a stance as though Ethereum is a security by all standards.
The Majority Whip of the United States House of Representatives described this act from Gensler, SEC, and its enforcement team as “regulatory dishonesty” which should be condemned. Emmer noted that such an act is harmful to investors and even the U.S. leadership.
“it’s tainting our great capital markets, harming investors, and threatening U.S. global leadership,” Emmer said.
ConsenSys and SEC Ethereum Lawsuit to Focus on Categorization
The SEC categorization of Ethereum as security is believed to be the reason being the delay in receiving approval from the Commission on the numerous spot Ethereum ETF applications that were submitted by BlackRock, Fidelity, and other investment asset management firms. Unfortunately, this led to the newly instigated ConsenSys versus SEC lawsuit.
By March, the SEC received a comment letter from ConsenSys in advocacy for Ethereum ETF approval. The firm emphasized the altcoin’s security features and urged SEC recognition amidst market anticipation. About a month later, the Ethereum developer served the SEC a suit on the same matter in the District Court for the Northern District of Texas.
In the latest court filing, the bone of contention is now to establish the timeframe of when the SEC categorically said ETH was a security. The verdict at the end of this lawsuit is crucial to the crypto ecosystem, seeing that victory for the commission could cripple the entire landscape.
- SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes
- Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze
- Expert Blames ‘Secret Committee’ for Rejecting MSTR Stock Inclusion to S&P 500
- MARA Bitcoin Treasury Nears $6 Billion, Trails Only Strategy in Public Rankings
- Senate Banking Committee Releases Updated Draft Crypto Market Structure Bill
- Chainlink Price Eyes $55 as Reserve Holdings Jump With 43,937 LINK Addition
- Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut
- ETH Price Forecast as Grayscale’s Covered Call Ethereum ETF Spurs Optimism — Is $8,500 in Sight?
- Bitcoin Price Prediction as SEC Unveils Agenda for Crypto Regulation — Is $200K Next?
- ONDO Price Prediction Amid Bitget Collaboration on Tokenized Stocks and ETFs: Is $2 Next?
