SEC Drops Investigation of Ethereum (ETH), Consensys Says

‘Big win’ reported by blockchain company Consensys. The US Securities and Exchange Commission (SEC) has reportedly confirmed that it is dropping its investigation into Ethereum (ETH). The state of the second largest blockchain has really weighed. What to conclude?

Consensus vs SEC: the battle that depends on Ethereum

Consensys received a warning letter from the SEC last April. This famous “Wells Notice” informed the company of its intention to conduct an investigation of the MetaMas walletk. The US financial watchdog criticized the wallet for acting as a broker, an “absurd” accusation that Consensys CEO and Ethereum co-founder Joseph Lubin called.

In response, the company filed a “wrongful takeover” complaint against the SEC:

Our action today is intended to protect the Ethereum ecosystem as well as the broader ecosystem of decentralized protocols. »

❓ To understand what is at stake – What is security and what does it mean for cryptocurrencies?

SEC Ends Investigation of Ethereum, Consensys Says

This appears to have been a thorn in the side of the SEC, who for years avoided answering the question: is Ethereum “security”? The US financial watchdog apparently did not want to engage in a long and costly battle, as it would signal to Consensys that it was dropping its investigation into Ethereum:

Today, we are pleased to announce a significant victory for Ethereum developers, technology providers, and industry participants alike. The SEC’s Division of Enforcement has informed us that it is dropping its investigation into Ethereum 2.0. »

💡 Don’t miss our guide on how to buy Ether (ETH) in 2024

One reason is the recent approval of Ethereum spot ETFs. Because the SEC approved them, this meant that it implicitly confirmed their status as “goods» (goods) and not “security”(finance degree). Consensys secured this in a letter to the financial police, who subsequently confirmed that they were dropping the investigation.

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Is The Battle For The Crypto Ecosystem Ongoing?

Consensys therefore welcomes this significant step, but does not declare victory. The company believes that the ecosystem is not cleaned up and that “the fight continues” :

We shouldn’t have to go so far as to litigate to get the regulatory clarity needed for an industry that is at the heart of many new technologies and innovations. But that is the current situation. »

👉 On the same topic – SEC crypto head leaves regulatory agency

CEO Joseph Lubin elaborated on the topic in a blog post. He stressed the importance of keeping the SEC in checkin order to support the technological development represented by blockchain:

The SEC does not have—and should not have—the power to regulate the technological development of the Internet or any underlying technology. »

Following the approval of spot ETH ETFs and with a possible change of government in the United States, So the SEC is indeed showing signs of running out of steamt, after years of campaigning against the crypto ecosystem.

Cryptocurrency Research: Don’t Miss This Bull Run, Surround Yourself With Experts

Source: Consensys

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