Consensys, a prominent firm in the cryptocurrency industry, is not backing down in its legal battle against the Securities and Exchange Commission (SEC). Despite the SEC ending its investigation into Ethereum 2.0, Consensys is pushing forward with its lawsuit, seeking regulatory clarity on the classification of Ethereum.
Laura Brookover, Consensys’ head of litigation, emphasized in an interview with CNBC that the fight for regulatory clarity is “far from over.” The SEC’s decision to close the Ethereum 2.0 investigation did not provide the clarity Consensys was looking for regarding the classification of Ethereum. As a result, Consensys is determined to continue fighting for more transparency around digital assets.
Furthermore, Brookover revealed that two SEC investigations are still ongoing to determine if Consensys violated securities laws through the swap and staking features of its MetaMask wallet. The SEC had previously issued a Wells notice to Consensys regarding these issues, indicating its intent to take enforcement action.
Consensys is seeking a declaration that the features of its MetaMask wallet do not violate securities laws, as stated in its April lawsuit. While the conclusion of the first investigation related to Ethereum protocol is a positive development, it falls short of providing the clarity Consensys is seeking through its legal actions.
Brookover expressed disappointment that the SEC’s letter closing the investigation did not offer any insights into the agency’s decision-making process. She criticized the SEC’s reliance on “regulation by enforcement,” calling for more clarity and collaboration between regulators and industry players in the crypto sector.
The approval of spot Ethereum ETF rule changes by the SEC in May further adds to the complexity of the regulatory landscape surrounding ETH. Brookover speculated that external pressures, such as congressional scrutiny and industry feedback, may have influenced the SEC’s decision to end the investigation.
Overall, Consensys remains committed to fighting for regulatory clarity in the crypto industry, despite the challenges posed by the SEC’s approach to enforcement. The ongoing legal battle underscores the importance of clear and collaborative regulation to support innovation and growth in the digital asset space.