Experts: SEC leveraging “lack of regulatory clarity” in crypto crackdownIn addition to ongoing litigation against firms like Coinbase and Ripple, Gary Gensler and the U.S. SEC have issued Wells notices against Uniswap, Consensys, and Robinhood for alleged violations. The intention to sue pertains to broad cryptocurrency services offered by the three firms, but a specific purview revolves around the second-largest blockchain asset, Ethereum (ETH).
Much confusion exists around the commission’s classification of Ethereum and its native currency Ether. The SEC Chairman regularly argued that cryptocurrencies fall under federal laws, citing the Howey Test as proof.
This take was axed in court during the agency’s protracted battle with XRP issuer Ripple. Still, a technological change may prove detrimental to Ethereum’s potential commodity status.
