According to Consensys, the SEC is closing its investigation into Ethereum

Leading Ethereum developer Consensys announced late Tuesday that the U.S. Securities and Exchange Commission (SEC) is “concluding its investigation” into the cryptocurrency.

“Today we are pleased to announce a major victory for Ethereum developers, technology providers, and industry participants: The SEC’s Enforcement Division has notified us that it is closing its investigation into Ethereum 2.0,” the company posted on Twitter. “This means the SEC will not bring charges alleging that ETH sales are securities transactions.”

After the SEC approved Ethereum spot ETFs last month, Consensys sent a letter to the SEC pointing out that the funds “assume that ETH is a commodity” and asking how the decision would affect the agency’s investigation. (Disclosure: Consensys is one of 22 investors in Decrypt.)

Consensys attorney Laura Brookover posted the SEC’s notification letter and the company’s full statement on the SEC’s move separately on Twitter.

“Since we filed our lawsuit against the SEC in late April, things have changed remarkably quickly, culminating in today’s developments,” Brookover said. wrote“After more than a year, the Ethereum investigation is finally complete and no charges have been filed against anyone.”

However, the SEC’s correspondence contained standard language noting that notice of the completion of its investigation “should not in any way be construed as an indication that the party has been exonerated or that the staff investigation will ultimately result in no action.”

In April, Consensys went on the offensive, filing a lawsuit against the SEC, claiming that the regulator was trying to “take control of the future of cryptocurrency” and was planning to classify Ethereum as a security. In fact, according to the unredacted lawsuit, Consensys claimed that the SEC had already decided Ethereum’s status internally a year earlier.

The lawsuit was triggered by a Wells Notice – a precursor to regulatory action – that Consensys said it had received for its popular MetaMask wallet.

On Tuesday, Consensys made it clear that it would continue to pursue its lawsuit against the SEC.

“In our lawsuit, we also seek a declaratory judgment that offering the MetaMask Swaps and Staking user interface software does not violate the securities laws,” the company said. “It should not take a lawsuit to provide much-needed regulatory clarity to allow an industry that serves as the backbone for countless new technologies and innovations to thrive.”

While the company welcomed the SEC’s withdrawal, it remained sharply critical of the agency’s approach to crypto regulation.

“The conclusion of the Ethereum investigation is significant, but not a panacea for the many blockchain developers, technology providers and industry participants who have suffered under the SEC’s unlawful and aggressive crypto enforcement regime,” Consensys added.

The SEC did not immediately respond to a request for comment from Decrypt.