Blockchain software company Consensys announced that the Enforcement Division of the United States Securities and Exchange Commission (SEC) has informed it about the conclusion of its investigation into Ethereum 2.0. This notification suggests that the SEC will not pursue charges alleging that the sales of ETH constitute securities transactions.
According to the company, this development represents a positive outcome for Ethereum builders, technology providers, and other industry stakeholders, indicating a favorable regulatory environment for their activities.
The move came after the firm sent a letter on June 7th seeking confirmation from the SEC regarding the implications of recent Ethereum exchange-traded fund (ETF) approvals in May, which implied that ETH was classified as a commodity. This prompted the SEC to close its investigation, representing a milestone. However, it does not address all the issues faced by the community, as many of its members keep experiencing difficulties due to the SEC’s stringent cryptocurrency enforcement practices.
ETHEREUM SURVIVES THE SEC.
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…
— Consensys (@Consensys) June 19, 2024
Consensys Challenges SEC’s Classification Of Ethereum In Ongoing Legal Battle
Consensys emphasized that the “fight” is still ongoing. In its April legal action, which challenges the agency’s classification of ETH as a security, the company seeks a declaration that offering the UI software MetaMask Swaps and Staking does not violate securities laws.
Over the past year, Consensys has received three subpoenas from the SEC, with the most recent one being issued this March. Additionally, in April, the firm was served with a Wells notice, indicating the upcoming enforcement action against it.
Until recently, the question of the SEC’s jurisdiction over Ethereum has been a contentious issue, particularly as the agency has issued subpoenas to firms associated with the Ethereum Foundation. Although SEC Chair Gary Gensler has not explicitly stated whether ETH is a security, he has acknowledged that many cryptocurrencies could fall under its regulatory scope.
Notably, in recent interviews, Gary Gensler has avoided directly addressing the classification of ETH. On the contrary, Commodity Futures Trading Commission Chair Rostin Behnam classifies ETH as a commodity.
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