A “major victory” reported by the blockchain company Consensys. The United States Securities and Exchange Commission (SEC) has reportedly confirmed that it is dropping its investigation into Ethereum (ETH). The status of the second largest blockchain indeed weighed in the balance. What to conclude?
Consensys against the SEC: a battle that hinges on Ethereum
Last April, Consensys received a warning letter from the SEC. This famous “Wells Notice” informed the company of its intention to conduct an investigation into the MetaMas walletk. The American financial watchdog criticized the wallet for fulfilling the role of a broker, an “absurd” accusation according to the CEO of Consensys and co-founder of Ethereum, Joseph Lubin.
In response, the company filed a complaint against the SEC for “illegal takeover”:
“Our action today is intended to protect the Ethereum ecosystem as well as the entire broader decentralized protocol ecosystem. »
❓ To understand what is at stake – What is security and what does it imply for cryptocurrencies?
SEC ends investigation into Ethereum, says Consensys
This appears to have been a thorn in the side of the SEC, who has avoided answering a question for years: is Ethereum a “security”? The American financial policeman apparently did not wish to embark on a long and costly battle, since it would have signaled to Consensys the abandonment of its investigation concerning Ethereum:
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
“Today, we are excited to announce a major victory for Ethereum developers, technology providers, as well as industry participants. The SEC's Enforcement Division has notified us that it is abandoning its investigation into Ethereum 2.0. »
💡 Don't miss our guide to learn how to buy Ether (ETH) in 2024
One reason is the recent approval of Ethereum spot ETFs. Since the SEC had approved them, this meant that it implicitly validated their status as “commodity» (goods) and not “security »(financial title). Consensys ensured this by a letter to the financial policeman, who then confirmed its abandonment of the investigation.
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The fight continues for the crypto ecosystem?
Consensys therefore welcomes this major step, but does not declare victory. The company believes that the ecosystem is not cleaned up, and that “the fight goes on “ :
“We should not go as far as litigation to obtain the regulatory clarifications needed by an industry that is at the heart of many new technologies and innovations. But this is the current situation. »
👉 On the same subject – SEC crypto head leaves regulatory agency
CEO Joseph Lubin spoke at greater length on the subject in a blog post. He stressed the importance of keeping the SEC at bayin order to promote the technological development represented by blockchain:
“The SEC does not have the authority – and it should not have – to regulate the technological evolution of the Internet, or any basic technology. »
After the approval of spot ETH ETFs, and with a possible change of government coming in the United States, the SEC is therefore indeed showing signs of running out of steamt, after years of campaigning against the crypto ecosystem.
Cryptoast Research: Don't waste this bull run, surround yourself with experts
Source: Consensys
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Journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance by analyzing how news in this sector influences the cryptocurrency sector, providing a unique and informed perspective to Cryptoast readers.
Marine Debelloir
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