US Lawyer; SEC May Classify ETH as a Security After Merge

John Deaton, a US lawyer conveyed his fears that the SEC could classify Ethereum as a Security after the Merge.
Referring to a statement made by Gary Gensler, Chairman of SEC, when he revealed that Bitcoin was the only crypto asset he would comfortably refer to as a non-security.

Just days before the most anticipated event on the Ethereum Network, Attorney and founder of Cryptolaw, John Deaton, articulated his fears over the feasibility that the US Securities and Exchange Commission (SEC) could go after Ethereum referring it to a Security after the long-awaited Ethereum Merge went live.

The US lawyer affirmed this pertaining to a statement made by Gary Gensler, Chairman of SEC. According to Gary, He believes that the world’s largest cryptocurrency by market cap is the only digital currency believed to be a commodity. Gensler’s statement shows that all altcoins including Ethereum, as digital currencies that fall under its regulatory purview.

In many altcoins, the Public is hoping for a return just like in other financial assets we call securities, and many of these crypto assets have key attributes of security… Bitcoin is the only one I am going to say… it’s a commodity.”

The statement also shows that Gensler is not ready to categorize ETH as a non-security despite an early statement made by William Hinman, Director of the Securities and Exchange Commission’s Division of Corporation Finance.

“Based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions,”

Deaton’s fears are courtesy of the ongoing lawsuit between Ripple and the Securities and Exchange Commission. Deaton fears that Gensler will categorize Ethereum as a Security after the Merge despite William Hinman’s remarks back in 2018.

Deaton commented on a recent comment by the SEC Chairman saying;

“Recently, Gensler said he is ONLY comfortable declaring Bitcoin a commodity. Which literally means he is uncomfortable and unwilling to declare ETH a commodity and thus a non-security, despite what Bill Hinman said in 2018.”

I hope you and @ethereumJoseph @ethereum and @ConsenSys are confident that my fear is misplaced. I also hope you don’t believe I somehow lost my right to be protected from SEC overreach, like I have as an #XRPHolder.

— John E Deaton (@JohnEDeaton1) September 12, 2022

The ongoing lawsuit between Ripple and the Securities and Exchange Commission has brought fear and anxiety as the current events that have been reported in the lawsuit have portrayed a bad impression among the crypto community, especially supporters of the cryptocurrency project.

Deaton has been among the top people who have continued to speak out against SEC’s regulatory approach to the crypto space.