Consensys, lead developer of Ethereum, announced late Tuesday that the U.S. Securities and Exchange Commission was “closing its investigation” into the cryptocurrency.
“Today, we are pleased to announce a major victory for Ethereum developers, technology providers, and industry participants: the SEC’s Enforcement Division informed us that it is closing its investigation into Ethereum 2.0,” the company posted on Twitter. “This means that the SEC will not bring charges alleging that ETH sales are securities transactions.”
After the SEC approved Ethereum spot ETFs last month, Consensys said it sent a letter to the SEC noting that the funds “relyed on ETH being a commodity,” asking how the decision would affect the agency investigation. (Disclosure: Consensys is one of 22 investors in Decrypt.)
Consensys attorney Laura Brookover separately released the SEC information notification letter and that of the company full declaration on the SEC’s move to Twitter.
“Things have changed remarkably quickly since we filed our complaint against the SEC in late April, culminating in today’s development,” Brookover wrote. “After over a year, the Ethereum investigation is finally over with no charges against anyone.”
The SEC’s correspondence, however, included boilerplate language disclaiming that the notice that it had concluded its investigation “should in no way be construed to indicate that the party has been exonerated or that no action can ultimately result from the staff investigation.
In April, Consensys goes on the offensive, file a complaint against the SEC which claimed the regulator was trying to “take control of the future of cryptocurrency” and was considering designating Ethereum as a guarantee. Actually, unexpurgated lawsuit revealedConsensys alleged that the SEC had decided Ethereum’s status internally a year prior.
The lawsuit was triggered by a Wells notice—a precursor to regulatory action—Consensys said it received for its popular MetaMask wallet.
On Tuesday, Consensys made clear that it will continue to make its case against the SEC.
“In our lawsuit, we also seek a declaration that the MetaMask Swaps and Staking user interface software offering does not violate securities laws,” the company said. “There should be no need for legal action to provide much-needed regulatory clarity to allow an industry that serves as the backbone of countless new technologies and innovations to thrive. »
While celebrating the SEC’s decision to reverse course, the company remained staunchly critical of the agency’s approach to crypto regulation.
“Closing the Ethereum investigation is momentous, but it is not a panacea for the many blockchain developers, technology providers, and industry participants who have suffered from Ethereum’s illegal and aggressive crypto enforcement regime. the SEC,” Consensys added.
The SEC did not immediately respond to a request for comment from Decrypt.
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