Consensys stated that the U.S. Securities and Exchange Commission (SEC) has notified the company that it will end its investigation into Ethereum 2.0. The SEC’s decision came after Consensys issued a request letter, which sought clarification on whether the SEC approved the Ethereum spot ETF with Ether attributes.

According to Consensys’ announcement, Consensys described this as a “significant victory for the industry,” with its tweet stating: Ethereum is spared from SEC scrutiny, meaning the SEC will not charge ETH sales as securities transactions. Our letter sent on June 7 requested the SEC to confirm that the approval of the Ethereum ETF in May was based on Ether being a commodity. The conclusion of the Ethereum investigation is significant, but it is not a panacea for many blockchain developers, technology providers, and industry participants who have suffered from the SEC’s illegal and aggressive crypto enforcement.

ConsenSys received a Wells notice from the SEC on April 10 and subsequently decided to proactively sue the SEC, with the following demands at the time:

– Declare in federal court that ETH is not a security.
– Confirm that MetaMask’s staking service does not violate securities laws.
– Assert that MetaMask is not a broker under federal law.

Consensys’ lawsuit is still ongoing, and FOX reporter Eleanor Terrett’s tweet pointed out that the SEC has not yet charged Consensys with violating the Wells notice, which suggested that MetaMask’s Swap trading and staking features were non-compliant. Charges may be formally filed in the coming days or weeks.

Consensys also stated in the announcement: Our battle continues, and we will demonstrate in the lawsuit that the features provided by the interface software MetaMask, such as Swaps and staking, do not violate securities laws and should not be used to provide necessary regulatory clarity through litigation.