ConsenSys, the leading blockchain firm, challenges the SEC’s inconsistent and ad hoc approach to crypto regulation despite applauding the recent approval of Ethereum ETFs.
The recent approval of Ethereum ETFs by the US SEC on May 23 rocked the crypto market, initially fuelling investor euphoria.
However, despite this significant achievement, the price of Ethereum declined, indicating a prudent reaction from the market.
Amid these developments, ConsenSys, a blockchain technology provider, has expressed apprehensions regarding the SEC’s regulatory practices despite applauding the Ethereum ETF’s approval.
ConsenSys Criticizes SEC’s Regulatory Tactics
ConsenSys has responded with ambivalence to the most recent SEC decision.
The organization disapproves of the SEC’s inconsistent regulatory approach despite the positive reception of the approval of Spot Ether ETFs.
According to a recent statement by ConsenSys on the X platform, this last-minute approval exemplifies the SEC’s “challenging ad hoc approach to digital assets.”
Significantly, they contend that this action unjustly singles out the cryptocurrency sector while impeding progress in digital assets.
Furthermore, the firm contends that particular regulatory scrutiny is unparalleled and detrimental to market participants and the rule of law.
Meanwhile, they contend that the endorsement signifies the SEC’s recognition of Ethereum as a commodity, which directly opposes its previous position and is currently the subject of a legal challenge.
Continual Legal Conflict and Ethereum Performance
ConsenSys continues to fight the SEC in court as it attempts to obstruct the regulator’s classification of ETH as a security.
The present legal action, initiated in the District Court for the Northern District of Texas, is in pursuit of unambiguous regulatory definitions that uphold the established classification of Ethereum as a commodity.
In context, on April 10, the SEC issued ConsenSys a Wells notice that outlined potential enforcement actions against its MetaMask wallet product.
Contrary to this, ConsenSys asserts that MetaMask is a functional interface that does not perform asset or transaction management.
Additionally, the company contends that erroneously categorizing Ethereum as a security could compromise its well-established position in the cryptocurrency market.
Meanwhile, the Ethereum market has responded with prudence to the sanction of the Ethereum ETF.
Ethereum has experienced a decline in price after its initial positive reception, indicating that investors are restraining their efforts before proceeding.
At the time of writing, the price of Ethereum had decreased by more than 3%, reaching $3,673.12, following a 24-hour peak of $3,943.55.
However, its 24-hour trading volume increased by over 99% to $47.6 billion, indicating robust market trading activity.
