- SEC ended its 14-month Ethereum 2 probe without charging Consensys
- Consensys claims that two SEC investigations are still being challenged.
Long-standing Legal battle The dispute between the United States Securities and Exchange Commission and Consensys (the company behind MetaMask) appears to be finally over.
Almost 14 months ago, SEC began investigating Ethereum [ETH] The Consensys 2.0.
Ethereum 2.0 is the post-Merge period when the network switched from Proof of Work to Proof of Stake. Consensys believes that the battle has not yet been won.
Effects of SEC terminating investigation into ETH 2.0
This development has sent ripples through the entire crypto community, raising the crucial question – What impact will this have on the broader industry?
Commenting on a topic Laura Brookover, Head of Litigation & Investigations at Consensys, told CNBC,
“Well, we were very pleased, to receive the letter noting that the investigation into Ethereum 2.0 has been concluded, and that it was concluded without charges against Consensys.”
She also added:
“It’s the right result, it’s the result that should have happened, a year ago. But of course, the fight isn’t over yet.”
Brookover emphasized, too, that Consensys’ lawsuit against Texas is challenging three different investigations.
She said these investigations form a large part of legal action taken to safeguard their operation and Ethereum’s ecosystem.
The story so far…
The SEC first hinted that Ether wasn’t a security in 2018. The SEC, however, quietly changed positions in 2023 and asserted authority to treat Ether as an asset. It also began investigating Ethereum.
Consensys filed a suit against the SEC in response. 25 April 2024In order to protect the Ethereum Ecosystem, aims at protecting it. The plaintiffs requested a court injunction to stop the investigation. Ether, they argued, is a currency and outside the SEC’s jurisdiction.
The SEC investigation of Ethereum 2.0 has caused significant concern among policymakers and members of Congress, as well as the public at large.
Consensys actually sent the message on June 7, 2007. letter The SEC was asked to confirm that the Ethereum 2.0 probe would be closed after the approval of the ETH ETF in May, which classified Ether a commodity.
In response to this, the SEC has issued an 18 June letter claimed,
“We do not intend to recommend an enforcement action by the Commission against your client, Consensys Software Inc., with respect to this investigation.”
It’s not over yet
The letter is not transparent enough for the industry, despite the SEC’s decision to end the investigation. The letter fails to provide any explanation as to why the SEC decided not pursue the case and the impact of this decision on other investigations or enforcement actions.
There are still many unanswered questions and the rapid evolution of the cryptocurrency industry calls for more clear regulatory guidelines. Brookover expanded on this, concluding.
“Until we get defended of answers and a judicial ruling that we have not isolated the security lawsuit we’re gonna keep fighting.”
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Source: ambcrypto.com