In a highly discussed chapter of the crypto legal saga, a recent court ruling has raised intense debates about the legal status of Ethereum (ETH) and Ethereum DCUs. The lawsuit, filed by HODL Law, was dismissed and is believed to have serious consequences for Ethereum and the entire crypto market. It also appears that the only cryptocurrency with legal clarity is Ripple’s XRP.
The court’s dismissal was based on procedural grounds, noting that HODL Law did not have standing to sue. This outcome only further complicates the current lack of regulatory clarity.
HODL Law started legal proceedings to find out the SEC’s stance towards Ethereum. The court stated that the SEC has not investigated the company nor threatened to do so, thus perceiving HODL Law’s apparent “imminent threat” as a distant harm.
According to HODL Law, the SEC’s refusal to clarify its position indicates that Ethereum is indeed a security. However, the court said that the submitted documents, including the Hinman Speech, did not prove that the SEC had officially concluded that Ethereum and Ethereum DCUs are not securities.
The verdict emphasizes the need for solid guidance from the SEC, rather than relying on disjointed litigation. The lack of clear guidance is worrying for Ethereum users as the court ruling hints that assuming Ethereum is immune from regulatory scrutiny could be considered “deliberate ignorance”.
Australian lawyer and digital asset enthusiast, Bill Morgan, highlighted that only Ripple’s XRP is currently enjoying legal clarity, and that Ethereum’s legal status remains undetermined and may soon be the target of SEC action.
HODL Law is not giving up and is planning to appeal the ruling and to investigate constitutional grounds that were not examined by the court. For now, Ethereum’s future remains uncertain.
