Top Highlights

• This combined with the SEC’s approval of Ethereum ETFs for trading in the U.S. has been widely perceived as an admission by the Commission that Ethereum is not a security, which in turn could mean that other proof-of-stake coins like Solana and Polygon are also not securities. But legal experts who spoke with Decrypt have warned against thinking in...
• “I expect that the letter has little to no impact on the legal classification of other [proof-of-stake] coins,”
• Consensys sued the SEC earlier this year in a preemptive move after receiving a Wells Notice, which typically indicates the regulator intends to bring an enforcement action.
• The SEC has now apparently changed its view. But even if the Commission is no longer investigating Ethereum, it could proceed differently with other tokens, says Hinkes, according to the manner in which those specific assets were initially sold. The SEC may also consider factors like the state of the technology, the mechanics of its block validatio...
• Matt Corva, a lawyer for Consensys, seemingly concurs, posting yesterday on Twitter: “We don't know [if Polygon, Solana, or other coins are securities] because the SEC has evaded showing their homework on precisely why they've now concluded that Bitcoin and Ethereum are not securities,”

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