Ripple’s Legal Chief Puzzled by SEC’s Ethereum Investigation About-Face

• While the SEC dropped charges against Ethereum developer Consensys, Ripple’s Stuart Alderoty says some critical questions, such as whether Ether is a security, remain unanswered.
• The agency has also failed to clarify the state of Consensys wallet MetaMask and the staking solutions, with founder Joe Lubin pledging to keep up the lawsuit against the watchdog.

The SEC dropped its charges against Ethereum developer and incubator Consensys this week in a big win for the altcoin and the entire industry. However, according to Ripple’s Stuart Alderoty, some critical questions remain unanswered, including whether Ether has been exempted from being a security.

As Crypto News Flash reported Wednesday, Consensys announced that the SEC’s Enforcement Division had notified it that it would close its investigation into Ethereum2.0. The company described this as “momentous” for the entire industry, but some in the XRP community were outraged at the SEC’s “arbitrary” decision-making on crypto.

Alderoty, who is the Chief Legal Officer at Ripple, has added his voice to the debate, criticizing the SEC for its continued demonstration of ineptitude.

He stated:

A big win for Consensys, though questions remain. Does this mean the SEC thinks Consensys’ offers and sales of ETH are not securities transactions and/or that ETH itself is not a security? What will Gensler say if now asked? What is the status of MetaMask and staking?

Alderoty, who has been spearheading Ripple’s defence against accusations of selling unregistered securities in XRP, added, “This is no way for a government to regulate.”

Anti-SEC Voices Grow Louder

Alderoty joins several other leaders in crypto and beyond who have been vocal in their criticism against Gary Gensler and the SEC in recent years.

These voices include Joe Lubin, the founder of Consensys and a co-founder of Ethereum alongside Vitalik Buterin and Gavin Wood. While his company was recently let off the hook by the SEC, Lubin insists that “it’s not enough.”

“We must remain vigilant and continue advocating for clear and fair regulations that enable innovation to flourish. The fight for a transparent and supportive regulatory environment is far from over,” he says.

Even those in the Biden government have criticized Gensler for his anti-crypto stance, which they believe could prove costly for the Democratic presidential candidate later this year. Billionaire Mark Cuban recently stated that he has been in talks with several legislators, and the problem of Gensler’s anti-crypto activities was a constant topic.

The industry’s continued campaign against the SEC and Gensler has seen the agency pull back in recent times. As Crypto News Flash reported today, the agency is leaning towards not appealing the Ripple ruling.

Meanwhile, XRP trades at $0.4914, dipping by 1.7% in the past day amid a bigger wave of red after some major gains earlier this week.