Expert Slams SEC Chairman For Lack Of Clarity On Ethereum’s Regulatory Status

As discussion regarding Ethereum‘s status heats up, the United States Securities and Exchange Commission (SEC) Chairman Gary Gensler has come under fire from well-known cryptocurrency market watcher and Cinneamhain Ventures founder Adam Cochran for the continued lack of clarity surrounding Ethereum regulations.

Cochran’s criticism is focused on what he believes to be the SEC’s erratic and ambiguous position regarding Ethereum’s classification, which might be impeding innovation in the cryptocurrency landscape and causing a great deal of uncertainty.

Need For Gensler’s Emphasis On Ethereum’s Legal Status

The Cinneamhain Ventures founder Adam Cochran noted that he would like to see one of the other SEC cases moved forward right away, citing its case with Ethereum. 

He demands that Paul Grewal, the Chief Legal Officer (CLO) of Coinbase should ask Gary Gensler to clarify in court how ETH, which he believes is not a security, differs from several assets he has asserted are securities in their cases.

It is worth noting that ETH is currently being investigated by the SEC to determine whether it should be classified as a security. As a result, several companies have been served subpoenas by the Commission, requesting financial information and documentation pertaining to their interactions with the Ethereum Foundation.

Following Ethereum’s successful move to a proof-of-stake basis in September 2022, the investigation seems to have gathered momentum. This transition appears to have potentially impacted the asset’s status as the agency considers the transition similar to an investment contract.

Cochran might be insinuating that the SEC’s chairman may not be able to provide clarity on the matter, claiming that Gensler’s meltdown would be historic.

The founder has been a constant vocal critic of Gensler, blasting the chairman on multiple occasions. Adam Cochran previously called Gensler a political weasel, following news of the SEC demanding that ETH Spot Exchange-Traded Funds (ETFs) applicants update their 19b-4s filing.

Responding to the development Cochran highlighted that it stands as a big win for ETH regarding its status as a non-security asset. “Ethereum is not a security, you overreached and were forced into line, you political weasel,” he stated.

Qualified Figure To Replace Gensler

Adam Cochran is displeased with Gensler’s tenor and hopes to see the chairman step down someday soon, in order for someone more qualified and rational to take control.

Thus, he cites the SEC’s Commissioner Hester Pierce as the right figure for the position, if the Biden-Harris administration gets tired of Gensler. “But, if not me, I would settle for someone rational and qualified, you know like Hester Peirce, who is already at the commission, engaged in topics, and a great way to show cross-aisle collaboration to court swing voters,” he stated

According to the founder, when financial regulation was not overseen by a self-serving clown like Gensler, many moderate and fiscal Republicans would be willing to vote.

Ethereum
ETH trading at $3,660 on the 1D chart | Source: ETHUSDT on Tradingview.com

Featured image from iStock, chart from Tradingview.com

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