Consensys, a prominent company in the cryptocurrency industry, is gearing up for a legal battle against the U.S. Securities and Exchange Commission (SEC) in the pursuit of regulatory clarity. Despite the conclusion of an investigation into Ethereum 2.0, Consensys Head of Litigation Laura Brookover expressed dissatisfaction with the lack of regulatory guidance provided by the SEC regarding Ethereum’s classification.
In an interview with CNBC on June 21, Brookover revealed that two SEC investigations are still ongoing to determine if Consensys violated securities laws through features of its MetaMask wallet. The SEC previously issued a Wells notice to Consensys, signaling its intent to take enforcement action on these matters.
Brookover emphasized that Consensys will continue to push for clarity on digital assets and aims to secure a declaration that the features in question do not violate securities law.
The end of the initial SEC investigation, which focused on Ethereum’s protocol and whether ETH is considered a security asset, did not provide the clarity sought by Consensys. Brookover noted that the SEC’s letter confirming the end of the probe did not address the core issues raised in the legal case.
Brookover criticized the SEC’s approach to regulation, stating that the lack of transparency in enforcement actions hinders companies from understanding the legal boundaries of their activities. She urged the SEC to adopt a more collaborative approach with the industry to foster a clearer regulatory environment.
Overall, Consensys remains at the forefront of the battle for regulatory clarity in the crypto sector and is prepared to continue its fight against the SEC to achieve the relief it seeks.
