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Consensys celebrates as US SEC concludes investigation into Ethereum 2.0, marking a significant victory for the industry

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Consensys Software Inc. Celebrates SEC Closing Investigation into Ethereum 2.0 as “Major Win” for Industry

Consensys Software Inc. Scores Major Victory as SEC Closes Investigation into Ethereum 2.0

In a groundbreaking development for the blockchain industry, Consensys Software Inc. announced today that the U.S. Securities and Exchange Commission’s enforcement division has officially closed its investigation into Ethereum 2.0. This decision has been hailed as a “major win” for the industry by Consensys.

The company took to its X post to share the news, stating, “Ethereum survives the SEC. This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.” This announcement comes after Consensys sent a letter to the SEC on June 7, seeking confirmation that the approval of spot ether exchange-traded funds in May would lead to the end of the investigation into Ethereum 2.0.

Consensys revealed that the approval of spot ETH ETFs was based on the premise that ETH tokens are commodities, a classification that the company has been advocating for. This decision by the SEC comes after Consensys filed a lawsuit against the agency in April, challenging the categorization of ether as a financial security.

The lawsuit alleged that the SEC’s Director of the Division of Enforcement approved the investigation into Ethereum 2.0 in March 2023, with the intention of examining individuals and entities involved in buying and selling ether. Consensys reportedly received a wells notice from the SEC in April, indicating that the agency planned to take enforcement action against the company.

While SEC Chair Gary Gensler has refrained from directly addressing the question of whether ether is a security, Commodity Futures Trading Commission Chair Rostin Behnam has classified ether as a commodity. Consensys remains steadfast in its fight, stating, “Our fight continues. In our lawsuit, we also seek a declaration that offering the user interface software MetaMask Swaps and Staking does not violate the securities laws.”

The SEC has not yet responded to requests for comment on this development. The closure of the investigation into Ethereum 2.0 marks a significant milestone for Consensys and the broader blockchain industry, signaling a potential shift in regulatory attitudes towards cryptocurrencies.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry.

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