CoinWorld reports:
Take a look at the latest news!
The US Securities and Exchange Commission (SEC) has returned the S-1 form to the potential issuer of an Ethereum ETF, accompanied by minor comments, requesting them to address issues and resubmit.
According to the SEC, this means: “Your submitted information is insufficient; we are not approving it this time. You have a few days to prepare the necessary documents and submit them to me by July 8th. I will review it then. Wait for my notification!!!”
This indicates that Ethereum’s ETF will still take some time to be approved! The altcoins are also facing some tough times!
Now, take a look at this!
Consensys, the parent company of the widely used MetaMask wallet, was formally sued by the US Securities and Exchange Commission (SEC) yesterday (28th). The SEC accuses MetaMask’s Swap and staking products of violating federal securities laws. Since 2020, Consensys has operated as an unregistered broker-dealer, offering unregistered securities through MetaMask.
The SEC stated in the complaint that MetaMask allows users to directly buy and sell digital assets through its “Swap” service within the application, for which Consensys charges fees. Over the past four years, Consensys facilitated over 36 million cryptocurrency transactions, with the SEC claiming at least 5 million of these involve “crypto asset securities.”
These crypto asset securities include tokens like Polygon (MATIC), Mana (MANA), Chiliz (CHZ), Sandbox (SAND), and Luna (LUNA), previously classified as securities in prior SEC litigation. The SEC also hinted that other digital assets may also be considered securities.
Consensys collected over $250 million in fees through its unregistered crypto asset brokerage and staking services, thereby depriving investors of critical protections. The SEC seeks permanent injunctions, civil penalties, and other equitable relief against Consensys for alleged violations of federal securities laws.
This enforcement action confirms long-standing concerns within the industry. Despite Ethereum’s spot ETF critical documents unexpectedly being approved last month, the likelihood of ETH being classified as a security has significantly decreased. However, the SEC still seeks to classify Ethereum-derived liquid staking tokens like Lido’s stETH and Rocket Pool’s rETH as securities.
The cryptocurrency market news is all about the SEC stirring up trouble. It’s essentially about who has the money; the SEC launches investigations! In plain terms, it’s a disguised protection fee!
Recent market trends continue to fluctuate, part of a market cleansing process. It’s advisable not to go all in! Coins mentioned by the SEC should be cleared out as much as possible to avoid getting trapped at high prices later on. Always keep some cash on hand! Wait for the right moment to strike decisively!