SEC Drops Ethereum 2.0 Investigation, Consensys Lawsuit Continues Over MetaMask

Blockchain company Consensys Software Inc. announced that the US Securities and Exchange Commission (SEC) has closed its investigation into Ethereum 2.0, marking a significant victory for the industry. 

The decision comes after Consensys sent a letter to the SEC on June 7, requesting confirmation that the agency would end its probe following the approval of spot ether exchange-traded funds (ETFs) in May.

Consensys filed a lawsuit against the SEC in April, opposing the agency’s categorization of ether as a financial security. The company claimed that SEC’s Director of Enforcement, Gurbir Grewal, had approved an investigation into Ethereum 2.0 on March 28, 2023, to examine individuals and entities trading ether. 

While SEC Chair Gary Gensler has not directly addressed whether ether is a security, Commodity Futures Trading Commission Chair Rostin Behnam has classified ether as a commodity. Consensys said on X that their “fight continues,” as they seek a declaration that offering user interface software like MetaMask Swaps and Staking does not violate securities laws.

Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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