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Highlights
- The SEC had initiated an investigation into Ethereum in March 2023, which it withdrew on June 18, 2024.
- Despite the positive development, Consensys refuses to withdraw its lawsuit against the regulatory agency.
- Consensys founder Joseph Lubin spotlighted the need for clarity on crypto regulation.
Consensys founder Joseph Lubin recently expressed optimism that the era of regulatory antagonism from the U.S. Securities and Exchange Commission (SEC) towards crypto may soon be over. This sentiment follows the SEC’s recent decision to close its 14-month investigation into Ethereum (ETH), a move seen as a major win for the industry.
Consensys Founder On SEC’s Crypto Tactics
Lubin, in a statement shared by Fox Business journalist Eleanor Terrett on X, conveyed his reaction to the closure of the investigation. He called it a “necessary but not sufficient” step. Moreover, Lubin elaborated, “There has to be a better way to regulate the market than through ambush.”
Furthermore, the Consensys founder expressed, “We are hopeful that the antagonism to crypto among some US regulators is starting to wane and that the national investor protection strategy will evolve from the current guerrilla tactics.” Despite the recent positive development, Consensys announced that it would continue its lawsuit against the SEC, filed in April.
The lawsuit was originally initiated in response to the SEC’s classification of Ethereum as a financial security, which Consensys and much of the crypto industry have vigorously contested. Now, the lawsuit seeks greater legal clarity regarding the regulatory framework for cryptocurrencies. In addition, Lubin underscored the ongoing need for clear regulatory guidelines.
He stated, “Until then, we soldier forth with our litigation against the SEC in Texas because we are intent on achieving more legal clarity for all.” This legal battle aims to address not only the classification of Ethereum but also the broader regulatory environment affecting blockchain technologies and innovations.
Also Read: Ripple CLO Uncovers Key Grey Area In SEC’s U-Turn On Ethereum Probe
SEC Closes Ethereum Investigation
Consensys described the closure of the SEC investigation as a “major win” for the industry. They noted that the agency would no longer pursue charges that sales of Ethereum constituted securities transactions. The investigation began in March 2023 under the direction of Gurbir Grewal, Director of the SEC’s Division of Enforcement.
It aimed to scrutinize individuals and entities involved in buying and selling Ethereum. Hence, a Wells notice issued to Consensys in April indicated the SEC’s intention to bring enforcement action against the company. In addition to its primary focus on Ethereum, Consensys has been vocal about the need for regulatory clarity for other aspects of its operations. This includes its MetaMask Swaps and Staking features.
Furthermore, the company is seeking a judicial declaration that offering these features does not violate securities laws. It emphasized that clear guidelines are essential for the advancement and adoption of crypto technologies. Meanwhile, the SEC’s decision to end its investigation comes at a time of heightened anticipation within the Ethereum community, particularly regarding the potential approval of a Spot Ethereum ETF.
Also Read: ETH Price Surges 5% After SEC Concludes Ethereum Investigation, Whale Activity Rises
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