Ethereum

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 Today, June 19, 2024, Blockchain firm Consensys<a style="color: #0000ff;" href="https://twitter.com/Consensys/status/1803230653120659641?t=XmghxwVAzIneJxxrEYEZPw&amp;s=19" rel="noopener noreferrer nofollow"> announced</a> in a post on X that the U.S. Securities and Exchange Commission (SEC) had closed its investigation into Ethereum 2.0, marking it a significant milestone for the second-largest cryptocurrency by market capitalization.
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According to Consensys, the SEC’s decision means the agency will not pursue charges alleging that sales of ETH constitute securities transactions.
<blockquote class="twitter-tweet">
 ETHEREUM SURVIVES THE SEC.
 Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.
 This means that the SEC…
 — Consensys (@Consensys) <a href="https://twitter.com/Consensys/status/1803230653120659641?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 19, 2024</a>
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The SEC’s<a style="color: #0000ff;" href="https://www.investopedia.com/cryptocurrency-market-news-sec-wants-to-define-ether-as-a-security-bitcoin-plummets-8619749" rel="noopener noreferrer nofollow"> investigation</a> into Ethereum focused on whether the cryptocurrency should be classified as a security. This scrutiny<a style="color: #0000ff;" href="https://www.investopedia.com/terms/i/initial-coin-offering-ico.asp" rel="noopener noreferrer nofollow"> stemmed from Ethereum’s initial coin</a> offering (ICO) in 2014, a fundraising method often compared to securities offerings and therefore requiring SEC compliance.
In March 2024, the SEC<a style="color: #0000ff;" href="https://fortune.com/crypto/2024/03/20/sec-gary-gensler-ethereum-security-commodity-crypto-foundation/" rel="noopener noreferrer nofollow"> issued a series of subpoenas</a> to several companies to classify ETH as a security. In response, Consensys filed a<a style="color: #0000ff;" href="https://consensys.io/crypto-regulations/defend-ethereum" rel="noopener noreferrer nofollow"> lawsuit</a> against the SEC, challenging what it described as the agency’s illegal attempt to expand its constitutional authority to include oversight of Ethereum.&nbsp;
The blockchain developer<a style="color: #0000ff;" href="https://consensys.io/crypto-regulations/defend-ethereum" rel="noopener noreferrer nofollow"> argued</a> that the SEC had wrongly labelled ETH as a security and adopted a “reckless approach” that could stifle innovation if left unchecked.
The 34-page legal document, published on April 25, contended that the SEC’s aggressive enforcement actions could undermine Congress’s progress on stablecoin policy and drive technological advancements outside U.S. borders.
Meanwhile, the blockchain firm noted in its recent announcement that it wrote a letter to the regulator earlier in June 2024, inquiring about the status of the investigation following the <a style="color: #0000ff;" href="https://defi-planet.com/2024/05/u-s-sec-officially-approves-ethereum-etfs-public-trading-yet-to-start/" rel="noopener noreferrer nofollow">approval of Ethereum ETFs</a> in late May.&nbsp;
Laura Brookover, senior counsel at Consensys,<a style="color: #0000ff;" href="https://twitter.com/laurabrooksie1/status/1803238438772076809?t=Gu12X2qfDABuHR808WFGoA&amp;s=19" rel="noopener noreferrer nofollow"> revealed</a> that the SEC recently<a style="color: #0000ff;" href="https://assets.ctfassets.net/gjyjx7gst9lo/6BtUdxsw1vlatBjIspkJN9/792adab194b9ac71c1eeeded42b01615/Termination_Notice_K._Schwartz_6.18.24.pdf" rel="noopener noreferrer nofollow"> responded</a> to its letter stating that it does not “intend to recommend an enforcement action.”&nbsp;&nbsp;
While this outcome marks a positive development for Ethereum, Consensys continues to push for<a style="color: #0000ff;" href="https://twitter.com/Consensys/status/1803230656652304780?t=LnYcgjixSL3OsfDsHN1BNA&amp;s=19" rel="noopener noreferrer nofollow"> regulatory clarity</a>. The blockchain firm is now seeking a<a style="color: #0000ff;" href="https://twitter.com/Consensys/status/1803230656652304780?t=LnYcgjixSL3OsfDsHN1BNA&amp;s=19" rel="noopener noreferrer nofollow"> declaration</a> from the SEC that offering user interface software such as MetaMask Swaps and Staking does not violate securities laws.
Notably, the SEC has not yet provided further comments on the matter.
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The post <a href="https://defi-planet.com/2024/06/u-s-sec-drops-probe-on-ethereum-2-0-no-charges-for-eth-sales-says-consensys/" rel="noopener noreferrer nofollow">U.S. SEC Drops Probe on Ethereum 2.0, No Charges for ETH Sales, Says Consensys</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

U.S. SEC Drops Probe on Ethereum 2.0, No Charges for ETH Sales, Says Consensys

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