Blockchain improvement firm Consensys says the U.S. Securities and Alternate Fee (SEC) is closing its Ethereum 2.0 investigation, which sought to find out if the second largest cryptocurrency by market cap is a safety.
In April, Consensys obtained a Wells Discover from the SEC indicating that the regulator is planning to pursue authorized motion towards the corporate due to its MetaMask pockets, which permits customers to self-custody ETH and different cryptocurrencies.
In response, Consensys sued the SEC and sought to halt the investigation into Ethereum. The corporate argued that the asset is a commodity and is subsequently past the jurisdiction of the securities watchdog.
In a brand new assertion, Consensys says it obtained discover that the SEC will now not pursue the investigation and the enforcement motion. This comes after the regulator greenlighted the sale of spot Ethereum Alternate-Traded Funds (ETFs) final month.
“On June 7, we despatched a letter asking the SEC to substantiate that the ETH ETF approvals in Could, which had been predicated on ether being a commodity, meant the company would shut its Ethereum 2.0 investigation.
Right now, the Enforcement Division of the SEC responded by notifying us that it’s closing its investigation into Ethereum 2.0 and won’t pursue an enforcement motion towards Consensys.”
Regardless of the constructive improvement, Consensys says the battle continues.
“Whereas we’re gratified by the SEC’s choice to face down on Ethereum, there may be extra work to be performed to guard crypto in the US. It’s crucial that the SEC abandon its unprincipled and opaque regulation-by-enforcement marketing campaign in favor of much-needed regulatory readability for an business that serves because the spine to numerous new applied sciences and improvements.”
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