- Mr. Huber thinks ConsenSys’ recent court filing demands are not realistic.
- The expert believes the court would never give any company a permanent free pass against the SEC’s investigations.
- ConsenSys prayed the court to declare that ETH is not a security under the Securities Act.
A famous crypto personality identified as Mr. Huber on X thinks ConsenSys’ recent court filing demands are unrealistic. Mr. Huber noted in a recent post that there is no way the court would give a company and its subsidiaries a general and permanent lifetime free pass against the SEC’s securities investigations.
The crypto expert further highlighted that approving ConsenSys’ requests would imply that no ETH transaction could ever be considered a securities offering. He thinks the situation exposes the loopholes in the ongoing regulatory debate in the crypto industry. According to Mr. Huber, it is improper to keep talking about the token itself and not its offering.
Meanwhile, Mr. Huber shared portions of ConsenSys’ recent filing and the prayers of the blockchain firm to the court. In its recent filing titled “Prayer for Relief,” ConsenSys prayed the court to declare that ETH is not a security under the Securities Act. Hence, the firm did not sell ETH as securities under the Securities Act. ConsenSys highlighted that if the court approves its prayers, it will imply that the SEC has no power to investigate it or enforce any action on the premise of ETH transactions as securities.
The blockchain firm also prayed the court to declare that the SEC’s enforcement action against it over ETH transactions would be unfair. According to ConsenSys, the declaration would classify such investigation and enforcement actions by the SEC as violating the requirement of fair notice under the Fifth Amendment’s Due Process Clause of the United States Constitution.
By citing several other prayers by ConsenSys, Mr. Huber believes the blockchain firm’s demands are unrealistic and unrealizable. He believes the court will not relieve the SEC of all powers to regulate such transactions involving ETH and other cryptocurrencies.
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