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

Consensys caput of litigation Laura Brookover said the institution would proceed to writer the SEC arsenic the “battle” for regulatory clarity is “far from over.”

In a June 21 interrogation with CNBC, Brookover said that contempt ending the Ethereum 2.0 investigation, the SEC did not supply immoderate regulatory clarity regarding Ethereum’s classification. She added that the steadfast volition proceed to combat for much clarity astir integer assets.

Brookover besides said that 2 SEC investigations stay underway to find whether Consensys violated securities laws done the swap and staking features of its MetaMask wallet.

The regulator antecedently sent a Wells announcement to Consensys implicit some issues, indicating that it intends to instrumentality enforcement enactment connected some matters.

Brookover said:

“Our existent plans are … to proceed warring truthful that we tin get the alleviation that we brought the suit to seek.”

Consensys aims to get a declaration that the 2 MetaMask features bash not interruption securities law, arsenic antecedently indicated successful its April lawsuit.

Conclusion of archetypal lawsuit not enough

The SEC ended 1 probe done a June 18 letter. Brookover said the archetypal probe “really focused connected the Ethereum protocol itself” and whether ETH is simply a information asset, including Ethereum 2.0, the merge, and the network’s modulation to staking.

Brookover said the SEC’s missive astir the extremity of the probe lone confirms that the bureau volition refrain from charging the steadfast and does not supply immoderate of the clarity Consensys sought done its ineligible case.

Brookover said:

“It disclaimed america drafting immoderate decision from it, specified arsenic … that [the SEC] recovered that Ether was a commodity and not a security.”

She said the extremity of the probe “doesn’t spell acold enough” successful providing transparency connected wherefore the bureau ended the investigation. It is besides unclear however the improvement is applicable to respective different investigations and enforcement actions that the SEC has underway.

Brookover speculated that “mounting pressure” from Congress and different manufacture members caused the SEC to extremity its probe but said the SEC had not provided an explanation.

She besides suggested that the SEC’s support of spot Ethereum ETF regularisation changes connected May 23 is “part and parcel of immoderate is going connected wrong the agency” regarding its stance connected ETH.

Brookover condemned the SEC’s wide stance, stating:

“Regulation by enforcement is wholly backwards. There should beryllium clarity truthful that companies … tin cognize for definite whether what they’re engaging successful is acceptable nether the instrumentality …”

She said companies indispensable presently hold for oral arguments during enforcement actions to larn the SEC’s stance. She called the attack “no mode to regulate” the crypto assemblage and urged the SEC to instrumentality a much collaborative attack with the industry.

 

The station Consensys to proceed suit against SEC arsenic ‘battle acold from over’ appeared archetypal connected CryptoSlate.