SEC Halts Ethereum Investigation: Consensys

In a significant development for the cryptocurrency industry, the United States Securities and Exchange Commission (SEC) has decided to end its investigation into Ethereum (ETH).

Consensys, a leading Ethereum developer and blockchain company, announced that the SEC’s Enforcement Division has closed its investigation into Ethereum 2.0. This decision, which means the SEC will not pursue charges alleging that sales of ETH are securities transactions, is seen as a major win for the industry. The closure of the investigation was communicated to Consensys in a letter from the SEC, signaling a significant shift in the regulatory landscape for Ethereum.

The SEC’s decision came after Consensys sent a letter to the agency following the approval of Ethereum spot exchange-traded funds (ETFs) in May. Consensys argued that the approval of these ETFs was based on the premise that ETH tokens were commodities, not securities. The company sought clarification from the SEC on this matter, prompting the agency to review its stance on Ethereum.

Despite the SEC’s decision to drop the investigation, Consensys remains critical of the regulator’s approach to cryptocurrency. The company contends that the SEC’s aggressive enforcement actions have stifled innovation and created uncertainty in the crypto industry. Consensys continues to press for regulatory clarity, seeking a court declaration that the use of MetaMask Swaps and Staking does not violate securities laws. This ongoing legal battle underscores the broader industry’s struggle for clear and fair regulation.