According to U.Today, Stuart Alderoty, the chief legal officer at Ripple, has voiced his concerns following the U.S. Securities and Exchange Commission's (SEC) unexpected decision to halt its investigation into Ethereum. Alderoty referred to the SEC's decision as a significant victory for Ethereum studio Consensys, but expressed uncertainty about whether this implies that the company's offers and sales of the Ether token are not securities. He also noted that the legal status of Ether itself largely remains ambiguous.
SEC Chair Gary Gensler has consistently declined to provide clarity on whether the Ether token can be considered an unregistered security. Alderoty is now curious about Gensler's response to such a question, given that the agency has abruptly concluded its investigation into Consensys. In April, Consensys, the Ethereum backer, filed a lawsuit against the SEC following a Wells notice of impending enforcement action. The company accused the SEC of causing harm to market participants and developers by attempting to classify Ether as a security. Consensys also defended its popular MetaMask wallet, refuting the SEC's allegations that it had breached securities laws by acting as an unregistered broker-dealer.
In a surprising turn of events, the SEC decided not to recommend an enforcement action, which led to an increase in the price of the Ether token earlier this week. However, Alderoty stated that the status of MetaMask and staking remains unclear. Consensys CEO Joseph Lubin celebrated the decision as a victory for Ethereum and the wider cryptocurrency community. He said, 'It's a testament to the strength of decentralized technology and the unyielding spirit of innovation that drives our builders.' However, he emphasized that the struggle for a supportive regulatory environment is far from over.