Consensys on Wednesday announced a major win for Ethereum developers, technology providers, and industry participants. It mentioned that the Enforcement Division of the US Securities and Exchange Commission (SEC) had notified that it is closing the investigation launched into Ethereum 2.0.
SEC will not proceed ahead
This move suggests that the commission will not proceed with the charges alleging that Ether sales are securities transactions. However, the biggest altcoin, Ethereum price jumped by more than 3%, since the announcement was made. This has helped Ether to wash out all the red indexes it printed all around.
ETH price is up by 14% in the last 30 days. Ethereum is trading at an average price of $3,543, at the press time. Its 24 hour trading volume stood at around $19.5 billion with a market cap of $433 billion.
Paul Grewal, Chief Legal Officer at Coinbase, in a post stated that “Good. It was a silly theory of liability, to begin with.” However, he questioned what about the ecosystem? What about the promotional statements? What about the efforts of others? How do you explain both this decision and the other projects maligned by the SEC’s broken Howey analysis?”
As reported, the US SEC had threatened regulation of Ether as a security would risk the ability to use Ethereum and similar blockchain technology. The implications would stretch far beyond digital asset trading, jeopardizing the future of countless new innovations, and products.
What is the case all about?
Consensys stated that this is why they took the necessary step of suing the US SEC. This was done in order to stop its unlawful power grab.
This decision was followed by a letter we sent on June 7 by Consensys. It asked the commission to confirm that the May ETH ETF approvals, which were premised on ETH being a commodity, meant the agency would close its Ethereum 2.0 investigation.
It added that the closing of the Ethereum investigation is momentous. Meanwhile, it might be not a cure-all for the many blockchain developers, technology providers, and industry participants who have suffered under the SEC’s unlawful and aggressive crypto enforcement regime.
Consensys also seeks a declaration that offering the user interface software MetaMask Swaps and Staking does not violate the securities laws. It should not take a lawsuit to provide the much-needed regulatory clarity to allow an industry that serves as the backbone to countless new technologies and innovations to thrive.