Consensys, a blockchain development company, has announced that the U.S. Securities and Exchange Commission (SEC) is ending its investigation into Ethereum 2.0. The investigation was looking into whether the second-largest cryptocurrency by market cap could be classified as a security.
In April, Consensys received a Wells Notice from the SEC, indicating that legal action was being considered due to its MetaMask wallet, which allows users to hold ETH and other cryptocurrencies securely. In response, Consensys filed a lawsuit against the SEC to stop the investigation, arguing that Ethereum is a commodity and therefore falls outside the SEC’s jurisdiction.
In a recent statement, Consensys revealed that the SEC will no longer pursue the investigation or take any enforcement action. This decision follows the approval of spot Ethereum Exchange-Traded Funds (ETFs) by the regulator last month.
“On June 7, we reached out to the SEC seeking confirmation that the approval of ETH ETFs in May, based on Ether being classified as a commodity, would lead to the closure of the Ethereum 2.0 investigation. Today, the SEC’s Enforcement Division informed us that it is closing the investigation and will not take any enforcement action against Consensys.”
Despite this positive outcome, Consensys emphasizes that the battle is not over. “While we appreciate the SEC’s decision regarding Ethereum, there is still more work to be done to protect the crypto industry in the U.S. It is crucial for the SEC to move away from its arbitrary enforcement tactics and provide clear regulations for an industry that underpins numerous new technologies and innovations.”
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