Leading Ethereum developer Consensys announced late on Tuesday that the US Securities and Exchange Commission (SEC) is "closing its investigation" into the crypto-currency.
"Today we are pleased to announce a major victory for Ethereum developers, technology providers and industry participants: the SEC's Enforcement Division has informed us that it is closing its investigation into Ethereum 2.0," the company posted on Twitter. "This means that the SEC will not pursue claims alleging that ETH sales are securities transactions."
Following the SEC's approval of spot Ethereum ETFs last month, Consensys sent a letter to the SEC noting that the funds "were based on the fact that ETH is a commodity", asking how this decision would affect the agency's investigation. (Disclosure: Consensys is one of 22 investors in Decrypt).
Consensys lawyer Laura Brookover posted the SEC's notification letter and the company's full statement separately on Twitter.
"Things have changed remarkably quickly since we filed our complaint against the SEC in late April, culminating in today's development," Brookover wrote. "After more than a year, the Ethereum investigation is finally over with no charges against anyone."
The SEC's correspondence, however, included a standard clause stating that notification of the conclusion of the investigation "shall in no way be construed to indicate that the party has been exonerated or that no action may ultimately result from the staff investigation."
Contacted by Decrypt, an SEC spokesperson said "the SEC does not comment on the existence or non-existence of any investigation."
In April, Consensys went on the offensive by filing a complaint against the SEC, claiming that the regulator was attempting to "seize control over the future of crypto-currency" and was considering designating Ethereum as a security. In fact, the unredacted complaint revealed that Consensys alleged that the SEC had decided Ethereum's status internally a year earlier.
The complaint was triggered by a Wells Notice - a precursor to regulatory action - that Consensys said it had received for its popular MetaMask wallet.
On Tuesday, Consensys made it clear that it would continue to fight its case against the SEC.
"In our complaint, we also seek a declaration that the offering of MetaMask Swaps and Staking user interface software does not violate securities laws," the company said. "It should not take a complaint to provide the regulatory clarity necessary for an industry that serves as the backbone for countless new technologies and innovations to thrive."
While celebrating the SEC's decision to back down, the company remained firmly critical of the agency's approach to crypto regulation.
"Closing the Ethereum investigation is monumental, but it is not a panacea for the many blockchain developers, technology providers and industry participants who have suffered under the SEC's aggressive and unlawful crypto enforcement regime," Consensys added.
