Consensys, a major player in the blockchain industry, announced that the U.S. Securities and Exchange Commission (SEC) has closed its investigation into Ethereum 2.0. This decision means the SEC will not claim that the sale of ETH constitutes a securities transaction.

Consensys Hails SEC Decision as Win for Blockchain Industry

On the 7th of June, Consensys asked the SEC to clarify whether the approval of the ETH exchange-traded fund (ETF) meant the end of Ethereum 2.0 investigation. The approval of the ETH ETF was given under the assumption that ETH is a commodity and not a security.

Today, Consensys received good news from the SEC’s Enforcement Division that the investigation has been terminated. This is good news for Ethereum developers, technology suppliers, and others involved in the world of blockchain.

However, Consensys noted that it remains a big step forward in the industry. However, it does not eliminate the all problems experienced by the blockchain community because of the SEC’s strict and rather ambiguous actions aimed at cryptocurrencies.

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On the other hand, Consensys is still struggling for better regulations regarding the industry. They are still in the process of fighting a legal battle to determine whether the use of MetaMask Swaps & Staking breaches on securities laws. They stated that regulatory certainty is needed in the industry. Because it contributes to many new technologies and innovations, that should not suffer from legal ambiguity.

End of SEC Ethereum Probe Seen as Positive, But Challenges Remain

This announcement brings relief to many in the blockchain industry. It sets the stage for further regulation of cryptocurrencies such as Ethereum beyond the conventional securities regulation. However, the constant demand for legal interpretation suggests that the legal requirements of blockchain applications are still highly uncertain and dynamic.

Lastly, Consensys’ example demonstrates the need for the broader industry for clear and fair rules that would not suppress innovation. Even though the end of the SEC investigation is considered a positive outcome. However, the calls for proper guidelines remain active. It will strive to help blockchain to evolve in a proper legal framework.