eToro Settlement Fuels Speculation That SEC Has Clarified Ethereum Is Not a Security

A
US
Securities
and
Exchange
Commission
(SEC)
settlement
with
eToro
is
fueling
speculation
that
the
regulator
has
clarified
that
Ethereum
is
not
a
security.

The
settlement,
which
required
eToro
to
delist
most
tokens
except
Bitcoin,
Bitcoin
Cash,
and
Ethereum,
is
seen
by
some
industry
leaders
as
an
implicit
acknowledgment
by
the
SEC
that
ETH
is
not
a
security.

“They
just
conceded
ETH
is
not
offered
as
an
investment
contract
security
in
secondary
markets,”
said
Coinbase’s
chief
legal
officer
Paul
Grewal
in
a
Sept.
12
post
on
X.
”But @SECGov

will
not
explain
why
ETH
and
BTC
but
no
others–because
they
can’t.”

They
just
conceded
ETH
is
not
offered
as
an
investment
contract
security
in
secondary
markets.
But

@SECGov
will
not
explain
why
ETH
and
BTC
but
no
others–because
they
can’t.
There
is
no
plan,
no
framework,
no
logic,
no
due
process,
and
certainly
no
respect
for
the
law.

pic.twitter.com/NNzaOtL6wR

—
paulgrewal.eth
(@iampaulgrewal)

September
12,
2024

Metalpha
Sends
Millions
Of
ETH
To
Binance
After
eToro
Settlement

Metalpha,
a
Hong
Kong
digital
asset
manager,
sent
sending
$16.4
million
worth
of
Ethereum
to
Binance
after
the
settlement,
as
confidence
around
ETH’s
regulatory
standing
appeared
to
strengthen
in
the
wake
of
the
settlement.

Metalpha
deposited
6,999
ETH
to
Binance
in
the
last
24
hours,
the
blockchain
tracking
platform
Lookonchain
said
in
a
Sept.
12
X


post.

Following
this
latest
transfer,
the
asset
manager
has
deposited
a
total
of
62,588
ETH
valued
at
$145.1
million
to
the
crypto
exchange
over
the
past
6
days.
Metalpha
still
holds
23.5K
ETH
worth
$55
million,
Lookonchain
added.

The
Ethereum
price
initially
rose
on
news
of
the
settlement,
but
is
trading
down
0.37%
at
$2,348
as
of
3.58
a.m.
EST.

SEC
Lambasted
For
Not
Having
A
Plan
In
Place
To
Regulate
Crypto

eToro
agreed
to
settle
charges
with
the
SEC
on
Sept.
12
relating
to
allegations
that
it
operated
as
an
unregistered
broker
and
facilitated
trading
in
some
crypto
assets
that
are
considered
as
securities.

The
fact
eToro
wasn’t
required
to
delist
Ethereum,
Bitcoin
or
Bitcoin
Cash
prompted
Coinbase’s
Grewal

criticize
the
SEC
for
not
explaining
why
ETH
and
BTC
are
not
securities.
The
agency
has
“no
respect
for
the
law,”
he
said,
and
has
no
plan
or
framework
in
place
to
regulate
the
crypto
sector.

So
the
SEC
finally
admits
that
1/ “crypto
asset
security”
is
a
made
up
term
and
2/
to
prove
a “crypto
asset
security”
is
an
investment
contract,
the
SEC
needs
evidence
of
a
bundle
of “contracts,
expectations,
and
understandings”?

Think
it’s
time
for

@SECgov
to
admit
it
has…

https://t.co/iJIYTnNvxs

pic.twitter.com/E58Pft7irc

—
Stuart
Alderoty
(@s_alderoty)

September
13,
2024

Ripple’s
chief
legal
officer
Stuart
Alderoty
also
criticized
the
SEC
for
its
approach
to
regulating
the
crypto
space.
He
called
the
agency
“a
twisted
pretzel
of
contradiction”
after
the
agency
said
that
“crypto
asset
security”
is
a
made
up
term.

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