• SEC concluded its 14-month Ethereum 2.0 probe with out charging Consensys
• Consensys asserts that the combat continues, with two extra SEC probes being contested

The long-standing authorized battle between america Securities and Change Fee (SEC) and Consensys, the agency behind the MetaMask pockets, seems to have lastly come to an finish.

For practically 14 months, the SEC had been investigating Ethereum [ETH] 2.0 and Consensys. 

For context, Ethereum 2.0 refers back to the post-Merge period when the community transitioned from Proof of Work (PoW) to Proof of Stake (PoS). Nonetheless, in response to Consensys, the battle is way from over. 

Impression of SEC ending the investigation into ETH 2.0

This improvement has despatched ripples by your entire crypto neighborhood, elevating the essential query – What affect will this have on the broader trade?

Commenting on the problem, Laura Brookover, Head of Litigation & Investigations at Consensys, advised CNBC, 

“Well, we were very pleased, to receive the letter noting that the investigation into Ethereum 2.0 has been concluded, and that it was concluded without charges against Consensys.”

She added, 

“It’s the right result, it’s the result that should have happened, a year ago. But of course, the fight isn’t over yet.” 

Brookover additionally emphasised that the Ethereum investigation is only one of three separate probes that Consensys is at the moment difficult in its lawsuit in Texas. 

She identified that these investigations are a big a part of the authorized motion they’ve undertaken to guard their operations and the broader Ethereum ecosystem.

The story up to now…

This all began means again in 2018 when the SEC alluded that Ether was not a safety. Nonetheless, in 2023, the SEC quietly modified its place, asserting authority over Ether as a safety and launching an investigation into Ethereum. 

This prompted Consensys to file a lawsuit in opposition to the SEC on 25 April 2024, with an intention to guard the Ethereum ecosystem. The plaintiffs sought a courtroom order to halt the investigation, arguing that Ether is a commodity and thus outdoors the SEC’s jurisdiction. 

This authorized motion spurred important concern from policymakers, together with members of Congress and most of the people concerning the SEC’s investigation into Ethereum 2.0. 

In truth, on 7 June, Consensys despatched a letter to the SEC asking for affirmation that Could’s ETH ETF approvals, which categorized Ether as a commodity, would finish the Ethereum 2.0 investigation.

Responding to the identical, the SEC in an 18 June letter claimed, 

“We do not intend to recommend an enforcement action by the Commission against your client, Consensys Software Inc., with respect to this investigation.”

Supply: Belongings.ctfassets.web

The combat isn’t over but

Regardless of the SEC’s resolution to shut the investigation, nevertheless, the letter lacks the transparency the trade wants. It fails to clarify why the SEC closed the investigation and the way this resolution impacts different ongoing investigations and enforcement actions. 

This leaves many questions unanswered and underscores the necessity for clearer regulatory pointers within the quickly evolving cryptocurrency panorama. Increasing on the identical, Brookover concluded, 

“Until we get defended of answers and a judicial ruling that we have not isolated the security lawsuit we’re gonna keep fighting.”