Gary Gensler-Led SEC Directs Crypto Firm To Halt Trading For All Coins But Bitcoin, Ethereum, And Bitcoin Cash — What Does It Mean?

A key detail revealed as part of the SEC’s settlement with the cryptocurrency platform eToro has suggested a drastic shift in the agency’s perspective on Ethereum ETH/USD.

What Happened: According to a press release on Thursday, the SEC found that the U.S. arm of the Israel-based multi-asset company’s operations violated federal securities laws by allowing the trading of cryptocurrencies as securities.

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The company consented to pay $1.5 million in penalties and agreed to scale back its cryptocurrency operations in the country. A significant aspect of the settlement was the directive to halt the trade of all other cryptocurrencies except Bitcoin BTC/USD, Bitcoin Cash BCH/USD, and Ethereum.

While Bitcoin and its offshoots were considered commodities, the SEC, under the leadership of Gary Gensler, had been unclear on whether Ethereum should be classified as a security.

Why It Matters: The settlement, coupled with the approval for Ethereum exchange-traded funds in July, indicated an end to years-long ambiguity on the matter.

Notably in June, blockchain software company ConsenSys announced that the SEC has closed its investigation into Ethereum’s security question.

In a parallel development, SEC Chair Gensler, known for his critical stance on the cryptocurrency industry, was under investigation by Republican lawmakers for allegedly engaging in political favoritism during the SEC’s hiring process.

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