Consensys: SEC concludes investigation into Ethereum 2.0, a "major victory" for the industry
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Consensys: SEC concludes investigation into Ethereum 2.0, a "major victory" for the industry
Consensys is still seeking a declaration that its user interface software does not violate securities laws, but the SEC has not yet responded to requests for comment.
Navigating Web3 tides with focused insightsAuthor: Danny Park
Translation: Echo, MarsBit
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Consensys said the U.S. Securities and Exchange Commission (SEC) has informed the company that it will end its investigation into Ethereum 2.0.
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The SEC's decision came after Consensys sent a letter requesting clarification on the categorization following the approval of spot Ether ETFs.
Consensys Software Inc. today announced that the Enforcement Division of the U.S. Securities and Exchange Commission has notified the blockchain company that it will conclude its investigation into Ethereum 2.0, calling it a "major victory" for the industry.
In a post on X, Consensys wrote: "Ethereum has passed the SEC’s test. This means the SEC will not bring charges based on ETH sales constituting securities transactions."
Consensys elaborated in its X post that the SEC's decision followed a letter it sent on June 7, asking the agency to confirm that its May approval of spot Ether exchange-traded funds implied an end to the Ethereum 2.0 investigation. Consensys noted that while the approval of spot ETH ETFs is not final, it is based on the premise that the ETH token is a commodity.
The blockchain development firm behind MetaMask, the Ethereum wallet, sued the SEC in April over the agency's classification of Ether as a financial security.
According to the lawsuit, Gurbir Grewal, Director of the SEC’s Enforcement Division, approved the investigation into Ethereum 2.0 on March 28, 2023, to examine individuals and entities involved in buying and selling Ether. Consensys reportedly received a Wells notice from the SEC in April, indicating the agency intended to take enforcement action against it.
While SEC Chair Gary Gensler has avoided directly answering whether Ether qualifies as a security, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam has classified Ether as a commodity.
"Our fight continues," Consensys said. "In our lawsuit, we are also seeking a declaration that offering user interface software such as MetaMask Swaps and Staking does not violate securities laws."
The SEC did not immediately respond to The Block’s request for comment.
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