The US Securities and Exchange Commission (SEC) has completed its inquiry into Ethereum 2.0 and has chosen not to pursue legal action, which is a notable triumph for Ethereum.
This decision might establish a standard for how digital assets are regulated under US securities law. The SEC’s move to reassess its 2018 stance on Ethereum, categorizing it as not a security, prompted a lawsuit from Consensys.
The case aimed to validate Ethereum’s classification as a commodity. Consensys urged the SEC to acknowledge the approval of Ethereum-based ETFs in May, contending that this action should bring an end to the SEC’s investigation.
Consensys received a notification from the SEC’s Enforcement Division on June 18, 2024, stating that the investigation had been completed and no enforcement action would be recommended. This closure has the potential to establish a precedent for other cryptocurrencies, thereby alleviating regulatory pressures.
Although the immediate danger has subsided, Consensys and the crypto industry are still seeking additional clarification.
They argue that they do not function as intermediaries or distribute securities using software such as MetaMask Swaps and Staking. This result is crucial for the cryptocurrency industry, as it demonstrates a progressing comprehension and approval of digital assets within the regulatory structure.
Similar coins may be subject to comparable treatment, which can promote innovation and expansion. The crypto industry will remain vigilant for additional regulatory advancements, as Consensys strives for unambiguous legal decisions and continues its endeavors to establish a definitive regulatory position.
