“The Battle Is Not Over Yet” Despite SEC Closing Ethereum 2.0 Probe – Exec

• The SEC ends its 14-month investigation into Ethereum 2.0 without charging Consensys.
• Consensys confirms that the fight continues, as two more SEC investigations are contested

For a long timeFair fight It appears that the relationship between the US Securities and Exchange Commission (SEC) and Consensys, the company behind the MetaMask wallet, has finally come to an end.

For nearly 14 months, the SEC has been investigating the matter Ethereum [ETH] 2.0 and compatibility.

For context, Ethereum 2.0 refers to the post-merger era when the network moved from Proof of Work (PoW) to Proof of Stake (PoS). However, according to Consensys, the battle is not over yet.

Impact of the SEC ending its investigation into ETH 2.0

This development has sent ripples through the entire cryptocurrency community, raising the crucial question – what impact will this have on the wider industry?

Commenting on this issue, Laura BrookoverThe head of litigation and investigations at Consensys told CNBC:

“Well, we were very pleased to receive the message that the investigation into Ethereum 2.0 has concluded, and that it has been concluded without charges being brought against Consensys.”

She added,

“It is the right result, it is the result that should have happened a year ago. But of course, the battle is not over yet.”

Brookover also stressed that the Ethereum investigation is just one of three separate investigations that Consensys is currently challenging in its lawsuit in Texas.

It noted that these investigations represent an important part of the legal measures it has taken to protect its operations and the broader Ethereum ecosystem.

The story so far…

This all started in 2018 when the Securities and Exchange Commission indicated that Ethereum was not a security. However, in 2023, the SEC quietly changed its stance, asserted its authority over Ethereum as a security and began an investigation into Ethereum.

This prompted Consensys to file a lawsuit with the Securities and Exchange Commission April 25, 2024In order to protect the Ethereum ecosystem. The plaintiffs sought a court order to halt the investigation, arguing that ether is a commodity and therefore outside the SEC’s jurisdiction.

This legal action has raised significant concerns among policymakers, including members of Congress, and the general public regarding the SEC’s investigation into Ethereum 2.0.

In fact, on June 7, Consensys sent A letter To the Securities and Exchange Commission to request confirmation that the May approvals of the ETH ETF, which classified Ether as a commodity, will end the realization of Ethereum 2.0.

Source: Laura Brookover/LinkedIn

Reply to the same, the SEC in Letter of June 18 claimed,

“We do not intend to recommend enforcement action by the Commission against your client, Consensys Software Inc., in connection with this investigation.”

Source: assets.ctfassets.net

The battle is not over yet

Despite the SEC’s decision to close the investigation, the letter lacks the transparency the industry needs. He failed to explain why the SEC closed the investigation and how this decision affects other ongoing investigations and enforcement actions.

This leaves many questions unanswered and underscores the need for clearer regulatory guidelines in the rapidly evolving cryptocurrency landscape. Expanding on the same thing, Brookover concluded,

“Until we are defended with answers and a judicial ruling that we have not isolated the security case, we will continue the struggle.”