Consensys to continue lawsuit against SEC as ‘battle far from over’

Consensys head of litigation Laura Brookover mentioned the corporate would continue to sue the SEC as the “battle” for regulatory readability is “far from over.”

In a June 21 interview with CNBC, Brookover mentioned that regardless of ending the Ethereum 2.0 investigation, the SEC didn’t present any regulatory readability relating to Ethereum’s classification. She added that the agency will continue to struggle for extra readability round digital property.

Brookover additionally mentioned that two SEC investigations stay underway to decide whether or not Consensys violated securities legal guidelines by means of the swap and staking options of its MetaMask pockets.

The regulator beforehand despatched a Wells discover to Consensys over each points, indicating that it intends to take enforcement motion on each issues.

Brookover mentioned:

“Our current plans are … to continue fighting so that we can get the relief that we brought the lawsuit to seek.”

Consensys goals to receive a declaration that the 2 MetaMask options don’t violate securities legislation, as beforehand indicated in its April lawsuit.

Conclusion of first case not sufficient

The SEC ended one investigation by means of a June 18 letter. Brookover mentioned the primary investigation “really focused on the Ethereum protocol itself” and whether or not ETH is a safety asset, together with Ethereum 2.0, the merge, and the community’s transition to staking.

Brookover mentioned the SEC’s letter concerning the finish of the probe solely confirms that the company will chorus from charging the agency and doesn’t present any of the readability Consensys sought by means of its authorized case.

Brookover mentioned:

“It disclaimed us drawing any conclusion from it, such as … that [the SEC] found that Ether was a commodity and not a security.”

She mentioned the top of the investigation “doesn’t go far enough” in offering transparency on why the company ended the investigation. Additionally it is unclear how the event is related to a number of different investigations and enforcement actions that the SEC has underway.

Brookover speculated that “mounting pressure” from Congress and different trade members brought about the SEC to finish its investigation however mentioned the SEC had not supplied an evidence.

She additionally instructed that the SEC’s approval of spot Ethereum ETF rule modifications on Could 23 is “part and parcel of whatever is going on inside the agency” relating to its stance on ETH.

Brookover condemned the SEC’s total stance, stating:

“Regulation by enforcement is completely backwards. There should be clarity so that companies … can know for sure whether what they’re engaging in is acceptable under the law …”

She mentioned firms should at present await oral arguments throughout enforcement actions to study the SEC’s stance. She known as the strategy “no way to regulate” the crypto sector and urged the SEC to take a extra collaborative strategy with the trade.


Talked about on this article

DailyBlockchain.News Admin

Our Mission is to bridge the knowledge gap and foster an informed blockchain community by presenting clear, concise, and reliable information every single day. Join us on this exciting journey into the future of finance, technology, and beyond. Whether you’re a blockchain novice or an enthusiast, is here for you.
Back to top button