Exclusive Insights: How Pro-Ripple Lawyers View Ethereum’s Regulatory Challenges

In response to the SEC ending its investigation into Ethereum 2.0 without recommending an enforcement action, Ripple’s Chief Legal Officer Stuart Alderoty and attorney Bill Morgan remain skeptical about the SEC’s decision to close its investigation into Ethereum 2.0, arguing that it does not resolve regulatory uncertainties surrounding ETH.

Alderoty commended Consensys on the outcome but expressed concerns about the ongoing regulatory ambiguity regarding ETH.

Alderoty questioned whether the conclusion of the Ethereum 2.0 investigation implies that the SEC does not consider Consensys’ offering of ETH as a security, and he raised the possibility that the SEC still views ETH as a security. He also expressed apprehension about SEC Chair Gary Gensler’s potential response to ETH’s regulatory status and highlighted the lack of clear regulatory guidance, which he believes could stifle innovation in the U.S. crypto industry.

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Similarly, attorney Bill Morgan opined that the SEC’s decision not to pursue enforcement action following its Ethereum 2.0 investigation does not provide clarity on the regulatory status of ETH. He contrasted the regulatory ambiguity surrounding ETH with the legal certainty XRP received from a federal judge last year, suggesting that Gensler may continue to withhold a definitive stance on ETH’s security status while being unable to do so in the case of XRP, due to the ruling that XRP itself is not a security.

What Next?

Although the SEC has concluded its investigations into Ethereum 2.0, Consensys remains entangled in a lawsuit against the securities regulator. Consensys filed the suit in April, seeking a Texas court ruling to declare the staking and swap services offered on Metamask as non-securities. Given the SEC’s silence on the status of Metamask’s services, Consensys has indicated that its legal battle with the regulator will persist.

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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
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