ConsenSys hits back at the SEC point by point, why Ethereum is not a security

1. The SEC’s historical position: In 2018, William Hinman, director of the SEC’s Division of Financial Affairs, made it clear that Ethereum is not considered a security, and there is currently no sufficient new evidence to support the SEC’s change in this position.
2. CFTC’s commodity classification: The Commodity Futures Trading Commission (CFTC) classifies Bitcoin and Ethereum as commodities, a classification that supports Ethereum’s non-security role in the market and regulation.
3. Decentralization and open protocols: Ethereum’s decentralized nature makes it inconsistent with the main reason for securities classification, which is to protect investors from information asymmetry.
4. The irrelevance of the consensus mechanism transition: Ethereum’s consensus mechanism change from proof of work (PoW) to proof of stake (PoS) does not affect its non-security classification.
5. The irrationality of the SEC’s reclassification: Considering the SEC’s historical regulatory approach, the classification of other regulators, the decentralized nature of Ethereum, and the irrelevance of its internal consensus mechanism to securities laws, the SEC’s reclassification of Bitcoin as a security lacks rationality.