SEC Finally Ends the Investigation of Ethereum Studio Consensys

Co-founded by Joe Lubin, an Ethereum co-founder, Consensys has developed helpful Web3 tools, including MetaMask—a crypto wallet—and the API provider Infura.

The United States Securities and Exchange Commission (SEC) has finally closed the investigation of Consensys, a blockchain company—good news that was enthusiastically received by the Ethereum community and beyond.

Consensys reported on X that the SEC’s Enforcement Division had concluded the investigation on Ethereum 2. 0. They shared the good news, stating:

“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,” the company posted. “This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.”

The news of the SEC investigation into Ethereum and its related companies started in March when Fortune magazine published the information that the SEC is considering three companies connected with Ethereum for possible violations of securities laws. In response, Consensys filed a suit against the SEC in April this year, alleging that the SEC wanted to exercise undue control over the cryptocurrency market. This lawsuit was filed after the SEC had given Consensys a Wells notice, a formal notification that the SEC plans to sue the company.

Based in Fort Worth, Consensys, co-founded by Joe Lubin, an Ethereum co-founder, has developed helpful Web3 tools, including MetaMask—a crypto wallet—and the API provider Infura. Despite many anticipating that the SEC would let the probe go after greenlighting several spot ether ETFs last month, the official notice has now removed a significant threat from the table.

A few days ago, Alexander Grieve, the head of Government Relations at the venture capital firm Paradigm, shared the letter from the SEC to Consensys on his Twitter account. The letter noted:  

“We write to provide notice that we have concluded the investigation in the [matter of Ethereum 2.0]…. based on the information we have as of this date, we do not intend to recommend an enforcement action by the Commission against your client, Consensys Software Inc. with respect to this investigation.”

According to Fortune, in March, the SEC had issued subpoenas to many companies and was deciding whether ETH should be categorised as a security. In April, Consensys sued the Securities and Exchange Commission (SEC) following a Wells notice issued by the SEC that suggested Consensys’s MetaMask crypto wallet may have violated the securities laws somehow.  

What Does the Future Hold for Ethereum?

The US SEC dropping the case against Consensys is undoubtedly a positive development for Consensys, but other legal concerns remain for the cryptocurrency sector as a whole. There is no information on whether the SEC will halt the investigation on Uniswap since a legal complaint has been filed.

However, Ethereum keeps expanding its market share and becoming more stable; the investment and development sides are uncovering more advantages and fewer drawbacks. The ending of an SEC investigation guarantees that Ethereum complies with the relevant regulations, polishing its image as one of the biggest virtual currencies in the ever-growing cryptocurrency world.

Thus, traders and investors in this active market need a reliable trading platform to harness this potential; BitDelta is one of them. You can use our platform through a website or a convenient mobile app. Our platform is designed to be suitable for new and seasoned traders alike.