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Consensys Says SEC Concludes Ethereum Investigation and Will Not Pursue Enforcement Actions Against Blockchain Company
Blockchain development firm Consensys says the U.S. Securities and Exchange Commission (SEC) is closing its investigation into Ethereum 2.0, which sought to determine whether the second-largest cryptocurrency by market capitalization is a stock.
In April, Consensys received a Wells Notice from the SEC indicating that the regulator was planning to take legal action against the company over its MetaMask wallet, which allows users to self-custody ETH and other cryptocurrencies.
In response, Consensys sued the SEC and tried to stop the investigation into Ethereum. The company argued that the asset is a commodity and is therefore outside the jurisdiction of the securities regulator.
In a new statement, Consensys He says has received notice that the SEC will no longer pursue the investigation and enforcement action. This comes after the regulator gave the green light to the sale of spot Ethereum Exchange-Traded Funds (ETFs) last month.
“On June 7, we sent a letter asking the SEC to confirm that the May ETH ETF approvals, based on Ether being a commodity, meant the agency would close its investigation into Ethereum 2.0.
Today, the SEC’s Enforcement Division responded by notifying us that it is closing its investigation into Ethereum 2.0 and will not take any enforcement action against Consensys.”
Despite the positive development, Consensys says the struggle continues.
“While we are gratified by the SEC’s decision to withdraw from Ethereum, there is still much work to be done to protect cryptocurrencies in the United States. It is imperative that the SEC abandon its unprincipled and opaque campaign of regulation through enforcement , advocating much-needed regulatory clarity for an industry that serves as the backbone for countless new technologies and innovations.”
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