Main Ethereum developer Consensys introduced late Tuesday that the U.S. Securities and Trade Fee is “closing its investigation” into the cryptocurrency.
“Right now we’re comfortable to announce a serious win for Ethereum builders, expertise suppliers, and trade contributors: the Enforcement Division of the SEC has notified us that it’s closing its investigation into Ethereum 2.0,” the corporate posted on Twitter. “Which means the SEC won’t convey fees alleging that gross sales of ETH are securities transactions.”
After the SEC authorized Ethereum spot ETFs final month, Consensys stated it despatched a letter to the SEC noting that the funds “had been premised on ETH being a commodity,” asking how the choice would have an effect on the company’s investigation. (Disclosure: Consensys is considered one of 22 traders in Decrypt.)
Consensys legal professional Laura Brookover individually posted the SEC’s notification letter and the corporate’s full assertion on the SEC’s transfer to Twitter.
“Issues have modified remarkably quick since we filed our lawsuit towards the SEC in late April, culminating in right now’s growth,” Brookover wrote. “After greater than a 12 months, the Ethereum investigation is lastly over with no fees towards anybody.”
The SEC’s correspondence, nonetheless, included customary language that disclaimed that the discover that it concluded its investigation “should by no means be construed as indicating that the celebration has been exonerated or that no motion could in the end consequence from the employees’s investigation.”
In April, Consensys went on the offensive, submitting a lawsuit towards the SEC that claimed the regulator was attempting to “seize management over the way forward for cryptocurrency” and that it was planning to designate Ethereum as a safety. The truth is, the unredacted lawsuit revealed, Consensys alleged that the SEC had internally selected the standing of Ethereum a 12 months prior.
The lawsuit was triggered by a Wells Discover—a precursor to regulatory motion—Consensys stated it obtained for its in style MetaMask pockets.
On Tuesday, Consensys made clear that it will proceed to press its case towards the SEC.
“In our lawsuit, we additionally search a declaration that providing the consumer interface software program MetaMask Swaps and Staking doesn’t violate the securities legal guidelines,” the corporate stated. “It shouldn’t take a lawsuit to supply the much-needed regulatory readability to permit an trade that serves because the spine to numerous new applied sciences and improvements to thrive.”
Whereas celebrating the SEC’s choice to again off, the corporate remained staunchly important of the company’s method to crypto regulation.
“The closing of the Ethereum investigation is momentous, however it’s not a cure-all for the various blockchain builders, expertise suppliers, and trade contributors who’ve suffered beneath SEC’s illegal and aggressive crypto enforcement regime,” Consensys added.
The SEC didn’t instantly reply to a request for remark from Decrypt.