Consensys still plans to pursue lawsuit against US SEC: report

Consensys Software Inc. will continue moving forward with its lawsuit against the U.S. Securities and Exchange Commission, Fox Business reporter Eleanor Terrett wrote in an X post, citing Consensys Founder Joseph Lubin. Yesterday, Consensys announced that the SEC was closing its investigation into Ethereum 2.0.

According to Terrett’s X post , Lubin said the closure of the SEC investigation is a development that was “necessary but not sufficient,” adding that the company will move forth with the litigation to achieve more legal clarity for crypto.

“We are hopeful that the antagonism to crypto among some US regulators is starting to wane and that the national investor protection strategy will evolve from the current guerrilla tactics,” said Lubin, according to Terrett’s post. 

Upon its Tuesday announcement, Consensys described the closure of the SEC investigation as a “major win” for the industry, noting that the decision indicated that the agency would no longer bring charges claiming the sales of Ether as securities transactions.

The SEC’s categorization of Ethereum as a financial security was what brought about Consensys’ lawsuit, which was filed in April. 

The blockchain software company alleged in the complaint that SEC’s Gurbir Grewal, Director of the Division of Enforcement, approved the investigation into Ethereum 2.0 on March 28, 2023, to examine individuals and entities buying and selling ether. Consensys allegedly received a Wells notice from the SEC in April, which meant the agency planned to bring enforcement action against it.

Lubin and Consensys did not immediately respond to The Block’s request for comments.