🚀 #SEC Closes Ethereum 2.0 Investigation After Consensys Lawsuit 🌟
The SEC has swiftly closed its Ethereum 2.0 investigation following Consensys’s April lawsuit, with no charges filed. This dispute began back in 2018 when the SEC initially declared Ether was not a security. However, in 2023, the SEC changed its stance, claiming Ethereum as a security and launching an investigation.
In response, Consensys sued the SEC on April 25, 2024, arguing that Ether is a commodity, not a security, and thus outside the SEC’s jurisdiction. This lawsuit gained significant support from policymakers, Congress members, and the public. Consensys stressed that the Ethereum ecosystem needed protection from what they saw as SEC overreach.
On June 7, Consensys sent a letter urging the SEC to acknowledge that its approval of ETH ETFs in May implied Ether's status as a commodity. This led to the SEC’s Enforcement Division closing the investigation and confirming no enforcement action would be taken against Consensys.
Consensys expressed relief and gratitude but also called for clearer, more principled regulatory guidelines, moving away from the SEC’s enforcement-heavy approach. They emphasized that no company or individual should endure costly litigation for regulatory clarity. Consensys aims to develop software empowering users to interact with the Ethereum network without the uncertainty of unlawful enforcement actions. 🚀✨