- On July 18, 2024, Hodl Law will challenge the SEC in the 9th Circuit Court over the classification of Ethereum, seeking a declaratory ruling to clarify Ether’s status.
- Hodl Law argues that the SEC’s unclear regulations and enforcement actions could harm its business operations.
- Concurrently, Consensys has also filed a lawsuit against the SEC, alleging regulatory overreach.
Hodl Law and Consensys challenge the SEC’s classification of Ethereum in court, seeking clarity on Ether’s status and alleging regulatory overreach.
Hodl Law Challenges SEC’s Ethereum Classification
Hodl Law, a cryptocurrency-using law firm, has scheduled oral arguments in the 9th Circuit Court of Appeals for July 18, 2024, to challenge the U.S. Securities and Exchange Commission (SEC). The firm seeks clarity on the classification of Ethereum and its native currency, Ether, arguing that the SEC’s unclear regulations and enforcement actions could harm its business operations.
SEC’s Response to Hodl Law’s Lawsuit
In response to Hodl Law’s lawsuit, the SEC argued that the firm’s concerns about future enforcement actions were speculative and lacked the specific harm required for legal standing. The SEC also asserted that Hodl Law’s characterization of its regulatory approach as “regulation by lawsuit” was insufficient to warrant court intervention.
Consensys Files Lawsuit Against SEC
Simultaneously, Consensys has filed a lawsuit against the SEC in a Texas court, alleging regulatory overreach. Like Hodl Law, Consensys claims that SEC Chairman Gary Gensler is attempting to reverse the regulator’s previous stance that Ethereum is a commodity, not a security.
Conclusion
The upcoming court hearing will delve into the complexities of crypto regulation and the SEC’s role in providing clear guidance to market participants. The outcome could have significant implications for the classification of Ethereum and other cryptocurrencies.
