Regulation
Consensys persists in SEC lawsuit over crypto clarity
Image: AI-generated via Midjourney.
Consensys, an Ethereum software company, continues its lawsuit against the U.S. Securities and Exchange Commission (SEC) for greater regulatory clarity in the cryptocurrency sector, even after the agency concluded its investigation into Ethereum 2.0.
Company founder Joseph Lubin acknowledged the SEC’s decision to end the investigation Tuesday as a positive step for the community.
However, he believes that this measure fails to provide the legal clarity necessary for the sector.
The abandonment of the SEC’s investigation into Ethereum’s move to a proof-of-stake model has sparked debates over the classification of Ether as a security.
Once the investigation is complete, uncertainties remain about its implications for other cryptocurrencies with similar mechanisms.
The Consensys lawsuit aims to resolve these regulatory ambiguities.
The SEC began reviewing Ethereum 2.0 on March 28, 2023, examining the buying and selling of Ether as it moves to a proof-of-stake consensus mechanism.
In April, Consensys received notice from Wells indicating the SEC’s intent to pursue enforcement action.
The company sued the SEC in April of this year, claiming that the SEC lacked the authority to regulate Ether.
Consensys described the SEC’s recent decision as a potential change in the regulator’s stance on Ether’s status as a security.