ConsenSys a blockchain technology company, welcomed the approval but criticized the SEC’s inconsistent regulatory methods.
The United States SEC recently approved Ethereum exchange-traded funds (ETFs) on May 23, agitating the cryptocurrency market and initially boosting investor confidence. The price of Ethereum, on the other hand, fell despite reaching this milestone, indicating that the market is responding cautiously.
In the meantime, in the midst of these developments, the blockchain technology company ConsenSys has expressed its reservations regarding the regulatory methods of the SEC, even as they express their delight in the approval of the Ethereum exchange-traded fund.
ConsenSys Slams SEC’s Regulatory Tactics
ConsenSys has expressed a range of emotions regarding the latest ruling by the SEC. While the company views the approval of Spot Ether exchange-traded funds (ETFs) as a positive development, it criticizes the SEC’s inconsistent regulatory approach. ConsenSys recently published a statement on the X platform, highlighting the Securities and Exchange Commission’s “troublesome ad hoc approach to digital assets” through this last-minute permission.
Particularly noteworthy is the fact that they contend that this action unfairly punishes the bitcoin sector while also impeding innovation in the digital asset space. Furthermore, the company asserts that no other industry faces such deliberate regulatory scrutiny, characterizing it as a direct threat to the rule of law and detrimental to market participants.
In the meantime, they argue that the permission is evidence that the SEC has acknowledged Ethereum as a commodity, which is in contrast to the SEC’s previous position, which they are currently disputing in court.As ConsenSys continues to fight the Securities and Exchange Commission (SEC) in court, the business is attempting to prevent the SEC from labeling Ethereum (ETH) as a security.
The District Court for the Northern District of Texas received this case with the goal of obtaining clear regulatory definitions that reinforce the long-standing stance that Ethereum is a commodity. The Securities and Exchange Commission (SEC) sent ConsenSys a Wells notice on April 10 indicating the possibility of enforcement actions against its MetaMask wallet product.
ConsenSys refutes this assertion, emphasizing that MetaMask is merely an interface that does not control assets or transactions themselves. Furthermore, the company argues that misclassifying Ethereum as a security would negatively impact its established role in the cryptocurrency market. The Ethereum market, on the other hand, has responded with caution to the Ethereum exchange-traded fund’s approval.
The price of Ethereum has decreased, which indicates that investors are taking a break before making any further moves, despite the fact that the first response was favorable. After reaching a 24-hour high of $3,943.55, the price of Ethereum has dropped by more than three percent and is currently trading at $3,673.12 as of the time of this writing. Its trade volume, on the other hand, has increased by more than 99% in the past twenty-four hours, reaching $47.6 billion, which indicates that there is substantial trading activity in the market.