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

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As a seasoned crypto investor with a few battle scars from the regulatory battles waged in the industry, I can’t help but share Lubin’s optimism, albeit cautiously so. The recent turn of events with Ethereum and the SEC is indeed a significant milestone, one that could potentially pave the way for clearer regulatory guidelines for the crypto market as a whole.

Joseph Lubin, the founder of ConsenSys, has recently expressed optimism that the intense scrutiny and regulations imposed by the US Securities and Exchange Commission (SEC) on crypto companies might soon ease up.

His outlook is rooted in a recent major achievement in the crypto sector, as the Securities and Exchange Commission (SEC), under the leadership of Gurbir Grewal, its Enforcement Division Director, unexpectedly concluded their long-standing dispute with Ethereum in March 2023.

ConsenSys to Continue Ethereum Lawsuit With SEC

FOX Business reporter Eleanor Terrett relayed statements from ConsenSys founder Joseph Lubin regarding the SEC’s decision on the Ethereum investigation. According to Lubin, this development is a significant step for the industry, but he believes more action is required.

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

Some U.S. regulatory opposition to cryptocurrencies may be softening, giving him renewed optimism that the approach towards protecting investors will shift from its present confrontational stance.

Despite the recent progress, ConsenSys remains committed to pursuing their legal action against the Commission. This lawsuit was initiated back in April. The company has made it clear that they will move forward with the case.

The dispute between ConsenSys and the SEC revolves around Ethereum’s classification as a security by the Securities and Exchange Commission. This is a contentious issue, as many cryptocurrency companies, including ConsenSys, disagree with this characterization. They have publicly expressed their opposition to this view regarding Ethereum and similar altcoins.

In the ongoing legal dispute, ConsenSys called for more definitive guidance from securities regulators on how cryptocurrencies are to be regulated. Following the termination of the probe into Ethereum, Lubin firmly maintains that such regulatory clarification remains essential.

Consequences of SEC’s Decision About Ethereum Investigation

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

As a crypto investor, I’m pleased to share that the investigation into the sale of Ethereum being considered as securities transactions has come to an end. This means that Gary Gensler and his team will no longer be pursuing any charges related to this issue. It’s worth noting that the Securities and Exchange Commission (SEC) approved spot Ethereum ETFs a few weeks ago, which could be seen as a subtle indication of this recent development.

ETHEREUM SURVIVES THE SEC.
We’re thrilled to share some great news with the Ethereum community: The SEC’s Enforcement Division has decided to conclude its investigation into Ethereum 2.0.
This means that the SEC…
— Consensys (@Consensys) June 19, 2024

The regulatory body had expressed a strong interest in classifying Ethereum as a security, which raised concerns among market analysts that this perspective could hinder the processing of Ethereock and other firms’ ETF applications. However, unexpectedly, the SEC gave its approval to the proposed rule change. Although trading has not yet started for the Ethereum ETFS, their creators are now working on completing and submitting their S-1 registration as required by the regulatory body.

Luckily, the SEC’s shift in attitude towards cryptocurrencies could accelerate the launch of Ethereum spot ETFs, potentially leading to a significant price surge for Ethereum in the upcoming weeks. At present, Ethereum is priced at $3,584.63, marking a 1.61% rise over the past day.

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2024-06-20 14:12