Leading Ethereum developer Consensys said late Tuesday that the US Securities and Exchange Commission is “closing its investigation” into the cryptocurrency.
“Today we are happy to announce a major victory for Ethereum developers, technology providers and industry participants: the SEC's enforcement division has informed us that it will close its investigation into Ethereum 2.0,” the company posted on Twitter. “This means that the SEC will not issue charges that ETH sales are securities transactions.”
After the SEC approved Ethereum Spot ETFs last month, Consensus said it sent a letter to the SEC saying the currency is an “ETH-based commodity,” asking how the decision would affect the agency's investigation. (Disclosure: Consensys is one of 22 investors in Decrypt.)
The deal's attorney, Laura Brookover, posted the SEC's notification letter and the company's full disclosure separately on Twitter when the SEC moved it.
“Things have changed dramatically since we filed our lawsuit against the SEC in late April, culminating in today's development,” Brookcover wrote. “After more than a year, the Ethereum investigation is finally over with no charges against anyone.”
The SEC's correspondence, however, included formal language stating that the notice of completion of the investigation “will in no way indicate that the party has been exonerated or that no action may ultimately be taken as a result of the employee's investigation.”
In April, Consensys filed a lawsuit against the SEC, alleging that it was trying to “take control of the cryptocurrency future” and that it planned to designate Ethereum as a security. , Consensys filed a lawsuit that the SEC decided the internal status of Ethereum a year ago.
The lawsuit was sparked by Wells' announcement—a prelude to regulatory action—that Consensys said it had accepted the popular MetaMask wallet.
On Tuesday, Consensys made it clear that it will continue to press the case with the SEC.
“In our lawsuit, we seek a declaration that providing user interface software MetaMask Swaps and Staking does not violate security laws,” the company said. “The industry that serves as the backbone for countless new technologies and innovations should not file a lawsuit to provide the regulatory clarity needed to thrive.”
While complying with the SEC's ruling, the company has strongly criticized the agency's handling of crypto regulation.
“Closing the Ethereum investigation is a milestone, but not a cure-all for the many blockchain developers, technology providers, and industry participants who have suffered under the SEC's illegal and draconian crypto enforcement regime,” Consensys added.
The SEC did not immediately respond to Decrypt's request for comment.
Daily Debrief Newspaper
Start every day with top news stories, plus original features, podcasts, videos and more.
