After stating in 2018 that Ether just isn’t a safety, the SEC modified its stance in 2023, asserting authority over Ether as a safety and launching an unwarranted investigation into Ethereum. On April 25, 2024, Consensys filed a lawsuit in opposition to the SEC to guard the Ethereum ecosystem, requesting a courtroom order to halt the investigation on the idea that ETH is a commodity, thus exterior the SEC’s regulatory jurisdiction.
Following this authorized motion, many policymakers—together with members of Congress—and the general public expressed their issues concerning the SEC’s Ethereum 2.0 investigation. On 7 June 2024, Consensys requested the SEC to verify that the ETH ETF approvals in Could 2024, which had been based mostly on Ether being a commodity, would result in the closure of its Ethereum 2.0 investigation.
Consensys requires clear crypto laws
Now, the Enforcement Division of the SEC responded by notifying Consensys that it’s closing its investigation into Ethereum 2.0 and won’t pursue an enforcement motion in opposition to them.
Whereas Consensys appreciated the SEC’s choice to drop the Ethereum investigation, they emphasise that extra must be performed to guard the crypto trade within the US. The SEC should transfer away from its inconsistent and unclear regulation-by-enforcement strategy and as a substitute present clear tips for an trade essential to quite a few technological developments. Consensys’s lawsuit additionally seeks a federal courtroom ruling that their MetaMask Swaps and Staking companies don’t contain performing as a dealer or issuing securities.
No firm or particular person ought to must endure pricey litigation to find out what’s lawful. Of their lawsuit, Consensys acknowledged, ‘Our company is dedicated to developing software that enables global use and innovation on the Ethereum network. They should be able to operate without the expense, burden, and uncertainty of an unjust enforcement action.’ This precept applies to the whole crypto sector. Consensys hopes that this end result alerts the beginning of a brand new, clearer regulatory path.