Ethereum
SEC closes investigation into Ethereum as a security
The Securities and Exchange Commission (SEC) is closing its investigation into Ethereum, the second-largest cryptocurrency by market capitalization, as a security, Consensys confirmed today (Wednesday).
“The SEC Enforcement Division has informed us that it is closing its investigation into Ethereum 2.0,” the company’s tweet said, adding: “This means that the SECOND will not result in charges alleging that ETH sales are securities transactions.
Consensys further confirmed that the decision was made after the US blockchain company sent a letter to the regulator on June 7 asking to “confirm that the May ETH ETF approvals, which were based on the fact that the ETH was a commodity, meant the agency would shut down its Ethereum.” Survey 2.0. »
A relief for Blockchain companies
The status of cryptocurrencies remains unclear and no regulations have been proposed regarding them in the United States. Although Bitcoin is considered a commodity, the status of Ether remains uncertain due to the SEC’s interest in multiple Ether offerings.
Earlier this year, Consensys, the company behind the popular MetaMask wallet, sued the SEC to dissuade the regulator from overseeing the Ethereum blockchain. The lawsuit argues that if the SEC continues to exercise its authority over Ethereum, it would shut down blockchain, “crippling one of the internet’s greatest innovations.”
The lawsuit follows a Wells notice received by Consensys indicating that the regulator was preparing to take enforcement action against the company regarding its MetaMask wallet services.
The company argued that MetaMask is not a broker-dealer and “does not hold clients’ digital assets or perform any transaction functions.”
With the SEC confirming that its investigations have concluded, companies offering Ethereum-based services may be relieved that they will not face prosecution for unregistered securities offerings.
However, Consensys confirmed that it will pursue the lawsuit as it seeks “a declaration that the offering of MetaMask Swaps and Staking user interface software does not violate securities laws.”
The Securities and Exchange Commission (SEC) is closing its investigation into Ethereum, the second-largest cryptocurrency by market capitalization, as a security, Consensys confirmed today (Wednesday).
“The SEC Enforcement Division has informed us that it is closing its investigation into Ethereum 2.0,” the company’s tweet said, adding: “This means that the SECOND will not result in charges alleging that ETH sales are securities transactions.
Consensys further confirmed that the decision was made after the US blockchain company sent a letter to the regulator on June 7 asking to “confirm that the May ETH ETF approvals, which were based on the fact that the ETH was a commodity, meant the agency would shut down its Ethereum.” Survey 2.0. »
A relief for Blockchain companies
The status of cryptocurrencies remains unclear and no regulations have been proposed regarding them in the United States. Although Bitcoin is considered a commodity, the status of Ether remains uncertain due to the SEC’s interest in multiple Ether offerings.
Earlier this year, Consensys, the company behind the popular MetaMask wallet, sued the SEC to dissuade the regulator from overseeing the Ethereum blockchain. The lawsuit argues that if the SEC continues to exercise its authority over Ethereum, it would shut down blockchain, “crippling one of the internet’s greatest innovations.”
The lawsuit follows a Wells notice received by Consensys indicating that the regulator was preparing to take enforcement action against the company regarding its MetaMask wallet services.
The company argued that MetaMask is not a broker-dealer and “does not hold clients’ digital assets or perform any transaction functions.”
With the SEC confirming that its investigations have concluded, companies offering Ethereum-based services may be relieved that they will not face prosecution for unregistered securities offerings.
However, Consensys confirmed that it will pursue the lawsuit as it seeks “a declaration that the offering of MetaMask Swaps and Staking user interface software does not violate securities laws.”