Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, and pro-XRP lawyer Bill Morgan are still skeptical about the SEC’s decision to conclude an investigation into Ethereum 2.0, believing that it does not clear up the regulatory uncertainty surrounding ETH.
Alderoty expressed his concerns about the regulatory status of ETH after Consensys, an Ethereum developer, revealed that the SEC does not recommend taking enforcement action based on its investigations into certain ETH sales. While congratulating Consensys on their win, Alderoty questioned whether the SEC’s decision means they do not consider ETH offered by Consensys as a security. He also speculated that the SEC may still view ETH as a security.
In addition, Alderoty raised questions about SEC Chair Gary Gensler’s stance on ETH’s regulatory status. He also pointed out that the SEC’s recent response did not address the regulatory status of Metamask’s staking and swap services, which could raise concerns about their legality.
Alderoty expressed frustration with the lack of clear regulatory guidance for the US crypto industry, noting that it could hinder innovation in the country.
Bill Morgan, a lawyer supporting Ripple, shared a similar sentiment, stating that the SEC’s decision not to pursue enforcement action after the Ethereum 2.0 investigation fails to provide clarity on the regulatory status of the second-largest cryptocurrency by market cap. He contrasted the regulatory ambiguity surrounding ETH with the legal clarity that XRP received from a federal judge last year. Morgan raised a rhetorical question about which situation is more preferable.
Morgan also speculated that Gensler would continue to avoid addressing whether ETH is a security, while he cannot do the same with XRP due to a ruling by US District Judge Analisa Torres, who determined that XRP itself is not a security.
Despite the SEC ending its investigations into Ethereum 2.0, Consensys is still involved in a lawsuit against the securities regulator. Consensys filed the lawsuit in April, seeking a court declaration in Texas that the staking and swap services offered on Metamask are non-securities. As the SEC did not comment on the status of these services, Consensys stated that its legal battle with the regulator would continue.
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