Further Regulatory Crackdown on Crypto May Soon be Over: ConsenSys Founder

UTC by Godfrey Benjamin · 3 min read
Further Regulatory Crackdown on Crypto May Soon be Over: ConsenSys Founder
Photo: Collision Conf / Flickr

ConsenSys has confirmed its plans to continue its lawsuit against the SEC as founder Joseph Lubin reiterates the need for regulatory clarity.

ConsenSys founder Joseph Lubin recently expressed confidence that the regulatory crackdowns on crypto firms by the United States Securities and Exchange Commission (SEC) may be nearing its end.

His optimism finds its basis on a significant milestone that the crypto industry recently hit with the regulator. In a rather surprising move, the Commission has decided to end its tussle with Ethereum (ETH price data) which began in March 2023 under the direction of Gurbir Grewal, Director of the SEC’s Division of Enforcement.

ConsenSys to Continue Ethereum Lawsuit With SEC

On X, FOX Business journalist Eleanor Terrett shared a statement detailing Lubin’s reaction to the SEC decision on the Ethereum investigation. While this is a major win for the industry that the ConsenSys founder described as “necessary”, he does not think it is sufficient.

“There has to be a better way to regulate the market than through ambush,” Lubin said.

He is still hopeful that the antagonism to crypto among some U.S. regulators is starting to fade off and that the “national investor protection strategy will evolve from the current guerrilla tactics.”

The recent positive development has not deterred ConsenSys from following through with its lawsuit against the Commission. The lawsuit in question was filed in April of this year. The firm specifically announced that it would continue with the said case.

The ConsenSys’ lawsuit with the SEC has to do with Ethereum. It particularly involves the regulator’s categorization of the second largest cryptocurrency by market capitalization as security. Like ConsenSys, many other crypto firms do not agree with the SEC and they have constantly voiced their disapproval of related altcoin classification.

In the lawsuit, ConsenSys requested that the securities regulator provide better legal clarity regarding the regulation of cryptocurrencies. With the latest development of ending the investigation into Ethereum, Lubin believes strongly that there is an ongoing need for clear regulatory guidelines.

Consequences of SEC’s Decision About Ethereum Investigation

Meanwhile, many crypto projects are about to be free from the legal shackles of the SEC.

The closure of the investigation means that Gary Gensler and his team would no longer pursue charges that the sales of Ethereum constituted securities transactions. It is noteworthy that the Commission’s approval of spot Ethereum ETFs a few weeks ago subtly hinted at this latest development.

ETHEREUM SURVIVES THE SEC.

Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.

This means that the SEC…

— Consensys (@Consensys) June 19, 2024

The regulator was keen on referring to Ethereum as security and many market observers feared that this sentiment was going to negatively impact Ethereum ETF applications filed by BlackRock and its counterparts. However, the SEC suddenly approved the proposed rule change when it was least expected. Trading is yet to commence for the Ethereum ETFs but the filers are working on their S-1 registration as requested by the regulator.

Fortunately, the SEC’s new stance towards the crypto may influence how fast trading starts for spot Ethereum ETFs. The price of Ethereum is also likely to be triggered with visible upsurge expected in the coming weeks. At the time of this writing, ETH was trading at $3,584.63 with a 1.61% increase within the last 24 hours.

Altcoin News, Cryptocurrency News, Ethereum News, News
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