Consensys, a blockchain development company, has announced that the U.S. Securities and Exchange Commission (SEC) is wrapping up its investigation into Ethereum 2.0. The investigation aimed to determine whether the second-largest cryptocurrency by market cap is considered a security.

Earlier this year, Consensys received a Wells Notice from the SEC, indicating the regulator’s intention to take legal action regarding its MetaMask wallet, which allows users to securely hold ETH and other cryptocurrencies. In response, Consensys took legal action against the SEC, arguing that Ethereum is a commodity and falls outside the jurisdiction of the securities watchdog.

In a recent statement, Consensys revealed that the SEC will no longer pursue the investigation or enforcement action. This decision follows the approval of spot Ethereum Exchange-Traded Funds (ETFs) by the regulator last month.

“In a letter dated June 7th, we requested confirmation from the SEC regarding the approval of ETH ETFs in May, which was based on Ether being classified as a commodity. Today, the SEC’s Enforcement Division informed us that the investigation into Ethereum 2.0 has been closed, and no enforcement action will be taken against Consensys.”

Despite this positive outcome, Consensys emphasizes that the battle is not over.

“While we appreciate the SEC’s decision regarding Ethereum, there is still more work to be done to safeguard crypto in the United States. It is crucial for the SEC to move away from their inconsistent and unclear enforcement tactics and provide much-needed regulatory clarity for an industry that is the foundation for numerous new technologies and innovations.”

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