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of ethereum price Stocks plummeted overnight following the revelation that the U.S. Securities and Exchange Commission (SEC) had secretly considered cryptocurrencies to be securities for more than a year.
Ethereum The stock is currently trading at a weekly low of around $3,050, down 3.9% on the day, according to data from . CoinGecko. In the past day, traders have moved around $15 billion worth of trading volume. ETH is currently trading 15% lower than it was a month ago.
Prices continue to fall following the release of previously redacted portions of ConsenSys’ lawsuit against the SEC. According to the software company’s complaint, an internal formal order issued by regulators in March 2023 explicitly referred to investigating “certain securities, including but not limited to ETH.”
This internal order stands in stark contrast to the regulator’s refusal to publicly state whether it considers Ethereum a security. SEC Chairman Gary Gensler has repeatedly deferred, including during meetings, when asked to outline the SEC’s position on the issue. House Financial Services Committee Oversight Hearing In October 2023.
If the SEC were to define Ethereum as a security, it would also contradict Gensler’s own previous statements on the issue. In 2018, while still teaching at MIT, he stated that Ethereum was “not a security” in the eyes of the SEC. Mr. Gensler appears to be referencing an opinion expressed by the SEC’s former head of the Division of Corporate Finance. William Hinmanin a June 2018 speech, he said that Ethereum is “sufficiently decentralized” and cannot be considered a security.
However, these statements pre-date the blockchain network’s 2022 “merge” with Ethereum. proof of work Consensus mechanism employed Bitcoin to proof of stake model.
In September 2022, during the Ethereum network merge, Gensler suggested that proof-of-stake cryptocurrencies could be considered securities, a view he has since taken. repeated. And the SEC’s March 2023 internal order specifically mentions investigating “Ethereum 2.0,” the name commonly used to describe the combined network.
The SEC’s position on Ethereum comes at a critical time, as regulators consider whether to approve or deny multiple applications for Spot Ethereum ETFs. The SEC has repeatedly delayed decisions on applications from asset managers such as Grayscale, BlackRock and Franklin Templeton.
With a key deadline in late May looming, ETF watchers are pessimistic about the chances of approval, with investment bank JPMorgan giving a similar outlook for approval or rejection. ing.
Edited by Stacey Elliott.
