The blockchain-related software company Consensys said it was “satisfied” with this decision by the American stock market watchdog.

Reassuring news for the Ethereum ecosystem. The Securities and Exchange Commission (SEC), the watchdog of the American stock market which controls financial markets, indicated in a letter published on June 18 that it “does not intend to recommend taking enforcement action against Consensys Software Inc”. To simplify, the SEC therefore abandons the investigation initiated last April against Consensys, at the origin of the Metamask wallet for the Ethereum ecosystem. Consensys believes that with this decision, the SEC no longer considers ethers to be “financial securities,” although the SEC letter does not explicitly mention this conclusion.

After this announcement, ether increased by 3.9% over one day to 3,530 dollars, this Wednesday, June 19 around 5:10 p.m.

The SEC’s letter follows a letter sent on June 7, 2024 by Consensys to the SEC, asking if the ongoing approval of ether ETFs (announced at the end of last May) closed its investigation against it.

“Today, we are pleased to announce a major victory for Ethereum developers, technology providers, and industry participants: the SEC’s Enforcement Division informed us that it is closing its investigation into Ethereum 2.0” , declared Wednesday June 19 Consensys, a blockchain software company, in a post published on X (formerly Twitter).

“This means that the SEC will not bring charges alleging that sales of ETH (ethers, editor’s note) are securities transactions,” interprets the company.

SEC warns

The SEC reiterates in its letter, however, that it “should in no way be interpreted as indicating that the party has been exonerated or that no action can ultimately result from the staff investigation.” In other words, the SEC is not precluding further investigations or prosecutions in the future.

In an article published on April 26 on its website, Consensys announced “to sue the SEC in order to put an end to its illegal takeover.” The company recalled at that time “that Ethereum is a global IT platform and not an investment program, that it is (from a legal point of view, Editor’s note) a commodity (and not of a financial security, Editor’s note), as confirmed on several occasions by the Commodity Futures & Trading Commission (CFTC)” and therefore that it cannot “be regulated by the SEC”.

Indeed, in the United States, the SEC is responsible for regulating financial securities, while the CFTC is in charge of regulating the commodity and raw materials market. The two regulatory authorities have been arguing over the regulation of the crypto sector for several years.

The American stock market watchdog opened an investigation in 2023 considering that ether should indeed be considered a “financial security”.

Although Consensys is “pleased with the SEC’s decision,” the company reiterates that “there is still work to be done to protect the crypto world in the United States.”


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