- HODL LAW takes legal action against SEC over Ethereum classification.
- Court dismisses HODL LAW’s lawsuit, citing lack of standing.
- HODL LAW believes SEC’s stance on Ethereum remains ambiguous.
HODL LAW, a prominent legal counsel in the crypto industry, recently announced their commitment to diligently fulfill their role and support clients who have suffered from exploitation within the crypto space. In a recent lawsuit filed on July 28, HODL LAW, PLLC took legal action against the U.S. Securities and Exchange Commission (SEC) in a United States District Court. The objective of this lawsuit is to seek a declaration regarding the classification of Ethereum (ETH) as a security.
Yesterday, the legal firm specializing in blockchain matters provided clarification that the court had approved the SEC’s motion to dismiss on procedural grounds, citing HODL LAW’s lack of standing to initiate the lawsuit. Additionally, the court highlighted that the SEC had yet to take any definitive action regarding Ethereum, which has resulted in continued uncertainty within the cryptocurrency community.
HODL LAW has voiced their dissatisfaction with the verdict, citing their belief that the SEC’s stance on Ethereum remains ambiguous and that their reliance on litigation as a means of enforcement raises no immediate concerns. The court also emphasized that HODL LAW had not been subject to any investigation or threats by the SEC, thereby minimizing the potential harm.
HODL LAW contended that the SEC’s recent decision to remain silent on Ethereum, coupled with their position in the case, suggests that they perceive Ethereum as a security and are biding their time to initiate any regulatory measures. The court additionally observed, in line with the perspective of a seasoned professional in the cryptocurrency industry.
Although the SEC’s failure to issue firm guidance on whether the Ethereum Network and Ether DCU’s are securities creates insecurity among the users, this uncertainty demonstrates why the controversy is uncertain at best.
Although the legal status of Ethereum remains uncertain following the court ruling, Bill Morgan, a lawyer and crypto expert, highlights that Ripple’s XRP is currently the only cryptocurrency that enjoys legal clarity. Stuart Alderoty, Ripple’s Chief Legal Officer, has recently emphasized that the ruling in the Terra case does not affect XRP’s classification as a security. He points to the extensive factual record established over two years in the ongoing Ripple case.
Given the recent setback, HODL LAW is actively delving into potential appellate avenues and unexplored constitutional grounds that the court should have thoroughly examined.
