Ethereum’s Consensys No Longer Under SEC Investigation

US Securities and Exchange Commission has been pursuing Consensys over allegations that it is a security. This protocol is owned by Ethereum, which has been countersuing the SEC.

In March, it became evident that the SEC was looking into Ethereum and specifically their Consensys blockchain software company. Ethereum has its hands in all sorts of decentralized currency products, and Consensys is one of their more helpful ventures, as it directly supports Ethereum.

Consensys was founded by the co-founder of Ethereum. They own MetaMask, which is one of the primary digital wallets for Ethereum.

Consensys, and therefore Ethereum, were being investigated by the SEC for several months in regards to Consensys transactions functioning as securities transactions. Now, the SEC has backed off and stated that they have dropped their investigation and will no longer be looking into the matter. They have determined that no violation has taken place.

This is not a quiet slipping away but rather a formal statement that the investigation has been dropped. The investigation was looking into Ethereum 2.0 as well, and Ethereum’s owners, employees, and partners are happy now that the pressure is off them from the government body. No charges will be brought as a result.

We may hear more news soon about who else the SEC has been investigating in these kinds of transactions, though, as three companies were reported to be under investigation back in March.

The Countersuit

In April, Consensys sued the SEC. with their complaint being that the government body was engaging in regulatory overreach. They said that there was an attempt to pigeonhole ETH to be defined as a security, when their argument is that it is definitely not.

We are likely to see more cases of this nature as  government authorities struggle with defining digital currency and decentralized finance products, trying to fit them into the current framework of the law.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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