Gairika Mitra
In a significant development for the Ethereum ecosystem, the U.S. Securities and Exchange Commission (SEC) officially dropped its investigation into “Ethereum 2.0” after ConsenSys filed its lawsuit.
ConsenSys filed the lawsuit to defend the ecosystem from what it described as the SEC’s regulatory overreach. As per the company on X, the SEC’s investigation into Ethereum, particularly its “Ethereum 2.0” upgrade, exemplified the agency’s aggressive enforcement agenda targeting blockchain developers.
The post further mentions that a Texas court recognized that the SEC had already provided the relief ConsenSys sought regarding this critical issue. This came as a surprising move, as earlier the Texas court dismissed the lawsuit. It didn’t even address the merits of ConsenSys’ claims.
The company noted that the ruling focused mostly on procedural technicalities rather than the substantive issues raised. This leaves many questions surrounding the SEC’s role in regulating digital assets unanswered, as per the company.
Previous cases of the SEC
This isn’t the first time the SEC faced criticism. In a related coverage, The Shib Daily reported how two SEC Commissioners Hester Peirce and Mark Uyeda expressed dissent from the SEC’s recent decision to issue an administrative order against a dining club for allegedly offering “crypto asset securities.”
In a related coverage, The Shib Daily wrote how two artists in the United States had sued the SEC. They noted that the agency did not have the authority to regulate the selling of NFTs (non-fungible tokens).
The SEC had also sued Ripple Labs saying that XRP (the digital currency associated with Ripple) was not treated as an investment, similar to stocks or bonds. The agency noted that Ripple must have treated it like that. It should have followed strict financial rules, like registering XRP with the government and providing detailed information to investors.
ConsenSys highlighted the aggressive stance of the SEC towards Ethereum. “Our suit against the SEC laid bare the overzealous investigation of Ethereum, and policymakers and the public at large voiced deep concern over the SEC’s investigation of blockchain software development,” said the firm.
On top of that, the company noted that beyond the courtroom, it observed what it described as a shifting attitude in Washington toward cryptocurrencies and digital assets.
Although the Texas court dismissed the case, ConsenSys said it remains committed to advocating for blockchain developers’ rights. It added that it is on the right track, though it will remain vigilant. The company has ongoing litigation in Brooklyn. “Consensys is resolved to keep fighting for the rights of blockchain developers in the U.S. as we contest the SEC’s action in Brooklyn,” it concluded.
Read More
- SEC Fines FlyFish Club for NFT Securities; Commissioners Peirce and Uyeda Criticize Overreach
- Five-Member SEC Commission Called to Testify on Crypto Assets
- SEC Settles Charges Against Rari Capital for Unregistered Securities and Misleading Investors
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
