The SEC concluded its investigation of Ethereum 2.0 after determining that the sale of ETH is not a securities transaction. Consensys sent a request for clarification on June 7 after the approval of ETH ETFs in May, which was based on ETH’s classification as a commodities. Consensys said,
“Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.
This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.”
Ethereum is up over 4% in the last 24 hours, as it has been a positive day for many crypto projects. Bitcoin, on the other hand, is down by 0.74%. CryptoSlate Data as at the time of publication.
Consensys announced This development is a major victory for Ethereum and its developers. This is a significant moment in the Ethereum Community, as it provides a respite from possible regulatory actions which could have classified ETH a security. SEC’s ruling is consistent with Commodity Futures Trading Commission’s (CFTC), who have consistently classified ETH a commodity.
Consensys is still a positive result. continues The company is fighting the SEC in court to gain more regulatory clarity. The SEC has been accused of being overly aggressive in its enforcement against technology and blockchain providers. Consensys also wants a ruling that the offering of user interface software such as MetaMask Swaps or Staking is not in violation of securities laws.
Consensys has stressed that the fight in court isn’t just about Ethereum, but also about protecting the future of innovation on the blockchains within the United States. SEC’s position regarding Ethereum could potentially have negative effects on US leadership. Consensys is challenging the authority of the SEC to avoid what it calls an unconstitutional power grab, which could hinder technology advancements and economic opportunity.
Consensys says that while the conclusion of the Ethereum case marks an important turning point, the regulatory framework as a whole needs to be significantly reformed. The lawsuit of the company highlights the importance of clear guidelines to encourage innovation, while also ensuring that existing laws are adhered to. In order to determine the direction and pace of the technological advancement as the blockchain industry develops, it is important that these issues are resolved.
Consensys believes that fighting for clarity in the regulatory environment is crucial to ensure blockchain technology grows and contributes to the economy. This company’s action reflects a larger concern among the crypto community regarding the need for balanced regulatory measures that promote innovation and growth without hindering it.
Both regulators and industry participants will be closely watching the result of Consensys’s legal fight with the SEC. This case highlights tensions that exist between technological innovation and regulatory oversight, which will influence the future of Blockchain technology.
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Source: cryptoslate.com