Consensys, an Ethereum software company, is continuing its lawsuit against the U.S. Securities and Exchange Commission (SEC) for greater regulatory clarity in the cryptocurrency sector, even after the agency concluded its investigation into Ethereum 2.0.
The company’s founder, Joseph Lubin, acknowledged the SEC’s decision to end the probe on Tuesday as a positive step for the community.
However, he claims it falls short of providing the necessary legal clarity for the industry.
The SEC’s discontinued investigation into Ethereum’s shift to a proof-of-stake model sparked debates over the classification of Ether as a security.
With the probe concluded, there remains uncertainty about its implications for other cryptocurrencies with similar mechanisms.
Consensys’s lawsuit aims to address these regulatory ambiguities.
The SEC began scrutinizing Ethereum 2.0 on March 28, 2023, examining the buying and selling of Ether during its shift to a proof-of-stake consensus mechanism.
In April, Consensys received a Wells notice, indicating the SEC’s intent to pursue enforcement action.
The company sued the SEC in April this year, claiming that the SEC lacked authority to regulate Ether.
Consensys described the SEC’s recent decision as a potential shift in the regulator’s stance on Ether’s status as a security.