ConsenSys to Persist in Legal Battle with SEC

ConsenSys is determined to achieve greater regulatory clarity regarding cryptocurrencies and will continue its legal battle with the SEC in court. This was reported by FOX Business journalist Eleanor Terrett, citing the company’s founder, Joseph Lubin.

?NEW: I reached out to @Consensys founder @ethereumJoseph for comment on the @SECGov dropping its investigation into $ETH and what it means for their lawsuit against the agency. He told me the company still plans to move forward with it:

“The SEC’s decision to close its…

— Eleanor Terrett (@EleanorTerrett) June 20, 2024

The statement followed the day after the agency’s enforcement division ended its investigation into Ethereum 2.0.

The SEC took this step after the organization sent a letter requesting clarification on the asset class when approving spot ETH-ETFs.

The relevant request on behalf of ConsenSys was submitted on June 7. In it, the company’s employees asked the regulator to confirm that the registration of 19b-4 applications for the product was based on the premise that the cryptocurrency is classified as a commodity.

“The Commission’s decision to end the 14-month investigation into Ethereum is welcome — it is necessary but insufficient. There must be a better way to regulate the market. […] We hope that the antagonism towards digital assets among some American agencies is beginning to wane. […] Until then, we will continue our legal proceedings against the SEC in Texas, as we aim to achieve greater legal clarity for everyone,” commented Lubin.

On April 26, the organization filed a lawsuit against the Commission and its five unnamed employees over “oversight of ETH.” It urged the court to officially establish a definition under which the asset would not be considered a security. 

Previously, ForkLog gathered industry participants’ opinions regarding the development of the SEC and ConsenSys dispute.

In April 2024, the largest decentralized exchange, Uniswap, received a warning from the agency about a potential lawsuit.