The SEC and Gensler believed that ether was a security for at least a year.

A complaint filed against the United States Securities and Exchange Commission has revealed more information about the SEC's position on Ether (ETH).

According to a report by Fox Business producer Eleanor Terrett, the SEC and its chairman, Gary Gensler, believed that ether was a security, at least for a while.

Citing court documents filed by Ethereum software company Consensys on April 29, Terreur wrote that the SEC and Gensler “seem to have believed for at least a year” that Ethereum was “an unregistered security business in compliance with current federal regulations.”

The new information comes just days after Consensys filed an unamended complaint against the SEC in Texas federal court on April 25. The filing comes in response to Wells' announcement from the securities regulator that it plans to sue the firm for failing to comply. Federal security laws.

According to the new filing, on March 28, 2023, SEC Enforcement Division Chief Gurbir Grewal approved a warrant for formal investigation of Ether as a security measure.

The investigation, known as the “Ethereum 2.0” investigation, is said to have given authorities permission to investigate and subpoena individuals and entities involved in the buying and selling of the cryptocurrency.

Citing unnamed sources with direct knowledge of the matter, subpoena recipients were told by the SEC that they had been subpoenaed for more details about the investigation.

Related: Franklin Templeton Lists Ethereum ETF on DTCC

The “Ethereum 2.0” investigation was based on the SEC's belief that unregistered ether offerings and sales have reportedly occurred since at least 2018.

If Gensler's SEC recognizes Ether as a security, it would go against the SEC's previous guidance under former chairman Jay Clayton. In June 2018, the current director of corporate finance, Bill Hinman, stated in an SEC position that Ether is not as secure as Bitcoin (BTC).

The new filings reveal that the five-member commission approved the April 13, 2023, Enforcement Division's “Ethereum 2.0” order, five days before Gensler appeared before the House Financial Services Committee, refusing to answer repeated questions about whether the SEC was. He believed that ether is security.

The news comes just days after applicants and companies involved in Ether exchange-traded funds in the United States said the SEC may delay its decision to approve such a product in May.

Bloomberg ETF analyst Eric Balchunas believes Gensler's position on Ether will influence the decision process, though Gensler declined to clarify whether Ether was a security last year.

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