Consensys: SEC ends Ethereum investigation and will not take enforcement action against blockchain companies

Blockchain development company Consensys announces that the US Securities and Exchange Commission (SEC) is completing its investigation into Ethereum 2.0. The aim of the investigation was to determine whether the second-largest cryptocurrency by market capitalization is a security.

In April, Consensys received a Wells Notice from the SEC stating that the regulator plans to take legal action against the company over its MetaMask wallet, which allows users to self-custody ETH and other cryptocurrencies.

In response, Consensys sued the SEC and attempted to stop its investigation into Ethereum, arguing that the asset was a commodity and therefore outside the securities regulator’s jurisdiction.

In a new statement, Consensys said it received notice that the SEC would not pursue its investigation and enforcement action. This comes after the regulator gave the green light to the sale of spot Ethereum exchange-traded funds (ETFs) last month.

“On June 7, we sent a letter to the SEC requesting confirmation that the ETH ETF approvals in May, which were based on the assumption that Ether was a commodity, meant that the agency would complete its investigation into Ethereum 2.0.

In response, the SEC’s Enforcement Division informed us today that it is closing its investigation into Ethereum 2.0 and will not take any enforcement action against Consensys.”

Despite the positive development, the fight continues, according to Consensys.

“While we are pleased with the SEC’s decision not to pursue Ethereum, there is still much work to be done to protect cryptocurrencies in the U.S. It is imperative that the SEC abandon its unprincipled and opaque regulatory campaign through enforcement and instead provide much-needed regulatory clarity for an industry that is the backbone of countless new technologies and innovations.”

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Generated image: Midjourney