Regulation
Consensys founder Joseph Lubin sees an end to the SEC’s crypto hostility very soon
Founder of Consensys Joseph Lubin recently expressed optimism that the era of regulatory antagonism from the US Securities and Exchange Commission (SEC) towards cryptocurrencies may soon be over. This sentiment follows the SEC’s recent decision to close a 14-month investigation into Ethereum (ETH), a move seen as a major win for the industry.
Founder of Consensys on SEC crypto tactics
Lubin, in a statement shared by Fox Business reporter Eleanor Terrett on X, expressed his reaction to the closure of the investigation. She called it a “necessary but not sufficient” step. Furthermore, Lubin explained: “There has to be a better way to regulate the market than through an ambush.”
Additionally, the Consensys founder said, “We are hopeful that antagonism toward cryptocurrencies among some US regulators is starting to wane and that the nation’s investor protection strategy will evolve from current guerrilla tactics.” Despite recent positive developments, Consensys has announced that it will continue its lawsuit against the SEC filed in April.
The lawsuit was originally filed in response to the SEC’s classification of Ethereum as financial security, which Consensys and much of the cryptocurrency industry have vigorously disputed. Now, the lawsuit seeks greater legal clarity regarding the regulatory framework for cryptocurrencies. Additionally, Lubin highlighted the continued need for clear regulatory guidelines.
He stated, “Until then, we will continue to pursue our litigation against the SEC in Texas because we are intent on achieving greater legal clarity for everyone.” This legal battle aims to address not only the classification of Ethereum but also the broader regulatory environment affecting blockchain technologies and innovations.
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SEC closes investigation into Ethereum
Consensys described the closure of the SEC investigation as a “big win” for the industry. They noted that the agency would no longer pursue charges that Ethereum sales constituted securities transactions. The investigation began in March 2023 under the direction of Gurbir Grewal, director of the SEC’s Division of Enforcement.
The goal was to carefully examine the people and entities involved in the buying and selling of Ethereum. Thus, a Wells notice sent to Consensys in April indicated the SEC’s intent to take enforcement action against the company. In addition to focusing primarily on Ethereum, Consensys has expressed a need for regulatory clarity for other aspects of its operations. This includes its MetaMask Swaps and Staking features.
Additionally, the company is seeking a court declaration that offering these features does not violate securities laws. He emphasized that clear guidelines are essential for the advancement and adoption of cryptographic technologies. Meanwhile, the SEC’s decision to end its investigation comes at a time of great anticipation within the Ethereum community, particularly regarding the potential approval of a Ethereum spot ETF.
Read also: ETH Price Rises 5% After SEC Concludes Ethereum Investigation, Whale Activity Increases