Leading Ethereum developer Consensys announced late Tuesday that the U.S. Securities and Exchange Commission would “close its investigation” of the cryptocurrency.
“Today we are excited to announce a major win for Ethereum developers, technology providers, and industry participants. “The SEC Enforcement Division has notified us that it is terminating its investigation into Ethereum 2.0,” the company posted on Twitter. “This means the SEC will not prosecute ETH sales for claiming they were securities transactions.”
After the SEC approved an Ethereum spot ETF last month, Consensys said it sent a letter to the SEC asking how the decision would impact the agency’s investigation, noting that the fund was “predicated on ETH being a commodity.” (Disclosure: Consensys is one of 22 investors. decryption.)
Consensys attorney Laura Brookover separately posted the SEC’s notice and the company’s full statement on the SEC’s move to Twitter.
“Since we filed our lawsuit against the SEC in late April, things have changed significantly and quickly, leading to the current developments,” Brookover said. wrote. “After more than a year, the Ethereum investigation has finally concluded with no charges filed against anyone.”
But the SEC’s letter includes boilerplate language that notices that it has closed its investigation “should not be construed to indicate that the parties have been exonerated or that no action may ultimately be taken as a result of the staff’s investigation.”
Last April, Consensys went on the offensive, filing a lawsuit against the SEC, alleging that the regulator was trying to “seize control of the future of cryptocurrencies” and planned to designate Ethereum as a security. It was actually revealed in the unredacted lawsuit. , Consensys claimed that the SEC internally determined the status of Ethereum a year ago.
The lawsuit was prompted by the Wells notice, a precursor to regulatory action. Consensys said it has received a request for the popular MetaMask wallet.
On Tuesday, Consensys made it clear that it would continue to file lawsuits against the SEC.
“In our lawsuit, we are also seeking a declaration that offering MetaMask Swap and Staking, the user interface software, does not violate securities laws,” the company said. “It shouldn’t take litigation to provide much-needed regulatory clarity so that an industry that is the backbone of so many new technologies and innovations can thrive.”
While the company celebrated the SEC’s decision to withdraw, it remained critical of the SEC’s approach to cryptocurrency regulation.
“The end of the Ethereum investigation is significant, but not a panacea for the many blockchain developers, technology providers, and industry participants who have suffered as a result of the SEC’s unlawful and aggressive cryptocurrency enforcement regime,” Consensys added.
The SEC did not immediately respond to a request for comment. decryption.
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