On June 18th, the U.S. Securities and Exchange Commission (SEC) announced the conclusion of its investigation into Ethereum 2.0, opting not to take enforcement action against Consensys. This decision marks a significant milestone for Ethereum developers, technology providers, and the ecosystem as a whole.
Following the announcement, legal experts have offered varied interpretations. While some view the investigation’s end as signaling no future scrutiny on Ethereum as a security (except for staking), others see it merely as a temporary ceasefire directed at Consensys alone.
Consensys promptly hailed the news as a pivotal victory, asserting that SEC’s notification effectively ends the Ethereum 2.0 probe without punitive measures against them. They also called for clearer regulatory guidelines from the SEC.
Legal perspectives echo Consensys’ stance. Laura Brookover, Consensys’ senior legal advisor and litigation head, emphasized that the investigation’s closure extends beyond Consensys, encompassing all aspects related to Ethereum, including code contributors and ETH traders. This conclusion, according to SEC’s enforcement manual, signifies no pending actions against any party.
However, dissenting opinions persist. David Barrera of Enumma pointed out that SEC’s letter does not conclusively end all investigations related to Ethereum, implying potential future legal entanglements for entities like Uniswap.
Importantly, SEC’s decision regarding Ethereum 2.0 is distinct from its stance on liquid staking and restaking activities, as clarified by Laura Brookover.
Regarding ETF approvals and other litigations, current indications suggest minimal impact on Ethereum ETF approvals, as SEC Chairman Gary Gensler indicated progress towards final approval this summer during recent budget hearings.
The landscape remains dynamic, with ongoing developments in legal cases and ETF applications.