SEC's Settlement With eToro Platform Signals a Shift in Perspective on Ethereum

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.

A key detail has emerged from the SEC's settlement with cryptocurrency platform eToro, hinting at a drastic shift in the agency's perspective on Ethereum (ETH).

What Happened: As part of the press release on Thursday, the SEC stated that the U.S. arm of the Israel-based multi-asset company’s operations violated federal securities laws by enabling the trading of cryptocurrencies.

The company agreed to pay $1.5 million in penalties and 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), Bitcoin Cash (BCH), 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.

See More: JPMorgan CEO Jamie Dimon Said He’d ‘Fire In A Second’ Anyone Caught Trading Bitcoin When It Was At $4,000. 7 Years Later, The Investment Bank Holds Positions In Spot ETFs Tracking The Apex Crypto

The settlement, coupled with the approval for Ethereum exchange-traded funds in July, seemed to end years-long ambiguity on the matter.

Interestingly, 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, who is 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.

Price Action: At the time of writing, Ether was exchanging hands at $2,350.22, down 0.58% in the last 24 hours, according to data from Benzinga Pro.