‘Fight isn’t over,’ despite SEC closing Ethereum 2.0 probe – Exec

• 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 the USA Securities and Alternate 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). Nevertheless, in accordance with Consensys, the battle is way from over. 

Affect of SEC ending the investigation into ETH 2.0

This growth has despatched ripples by means of the complete crypto group, elevating the essential query – What affect will this have on the broader trade?

Commenting on the difficulty, Laura Brookover, Head of Litigation & Investigations at Consensys, instructed CNBC, 

“Properly, we have been very happy, to obtain the letter noting that the investigation into Ethereum 2.0 has been concluded, and that it was concluded with out costs towards Consensys.”

She added, 

“It’s the precise outcome, it’s the outcome that ought to have occurred, a 12 months in the past. However in fact, the combat isn’t over but.” 

Brookover additionally emphasised that the Ethereum investigation is only one of three separate probes that Consensys is presently 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 method again in 2018 when the SEC alluded that Ether was not a safety. Nevertheless, 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 towards the SEC on 25 April 2024, with an goal 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 Might’s ETH ETF approvals, which categorized Ether as a commodity, would finish the Ethereum 2.0 investigation.

Supply: Laura Brookover/LinkedIn

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

“We don’t intend to suggest an enforcement motion by the Fee towards your consumer, Consensys Software program Inc., with respect to this investigation.”

Supply: Property.ctfassets.web

The combat isn’t over but

Regardless of the SEC’s choice 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 choice 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, 

“Till we get defended of solutions and a judicial ruling that we have now not remoted the safety lawsuit we’re gonna hold combating.”