Regulation
Consensys Founder Joseph Lubin Sees End of SEC Crypto Hostility Very Soon
Founder of Consensys Joseph Lubin recently expressed optimism that the era of regulatory antagonism from the United States 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 victory for the industry.
Consensys Founder on SEC Crypto Tactics
Lubin, in a statement shared by Fox Business reporter Eleanor Terrett on X, shared his reaction to the investigation’s closure. He described this measure as “necessary but not sufficient”. Furthermore, Lubin clarified: “There has to be a better way to regulate the market than through ambushes. »
Additionally, the Consensys founder said, “We hope that the antagonism toward crypto among some U.S. regulators will begin to subside and that the nation’s investor protection strategy will evolve from current guerrilla tactics . » Despite the recent positive developments, 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 as Ethereum as financial security, something Consensys and much of the crypto industry have vigorously contested. Now, the lawsuit seeks greater legal clarity regarding the regulatory framework for cryptocurrencies. Additionally, Lubin emphasized the continued need for clear regulatory guidelines.
He said: “In the meantime, we are continuing our litigation against the SEC in Texas because we intend to obtain more legal clarity for everyone. » This legal battle aims to address not only the classification of Ethereum, but also the broader regulatory environment affecting blockchain technologies and innovations.
Read also: Ripple CLO discovers key gray area in SEC U-turn on Ethereum probe
SEC closes investigation into Ethereum
Consensys described the closure of the SEC investigation as a “major victory” for the industry. They noted that the agency would no longer pursue accusations that Ethereum sales constituted securities transactions. The investigation began in March 2023 under the direction of Gurbir Grewal, Director of the SEC’s Enforcement Division.
It aimed to examine individuals and entities involved in the buying and selling of Ethereum. As a result, a notice from Wells to Consensys in April indicated the SEC’s intention to take enforcement action against the company. In addition to focusing primarily on Ethereum, Consensys has expressed the need for regulatory clarity for other aspects of its operations. This includes its MetaMask Swaps and Staking features.
Additionally, the Company is seeking a judicial declaration that offering these features does not violate securities laws. He emphasized that clear guidelines are essential for the progress and adoption of crypto technologies. At the same time, 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 Ethereum Spot ETF.
Read also: ETH Price Rises 5% After SEC Concludes Its Investigation into Ethereum and Whale Activity Increases
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