Consensys Legal Battle with SEC Persists Even After Conclusion of Ethereum Probe According to Legal Expert

The legal battle between Consensys and the SEC could potentially reveal the true stance of the regulator on Ethereum, according to Attorney Rispoli.
The SEC’s decision to close its investigation into Ethereum 2.0 without recommending any enforcement action has sparked mixed reactions. Attorney Fred Rispoli expressed his thoughts on the matter on a forum.
Rispoli pointed out that while the closure of the investigation may seem like a positive outcome as it removes the immediate threat of enforcement action, there are still unresolved issues at hand.
Consensys, the Ethereum developer, has made it clear that they are not backing down from their fight with the SEC. The SEC had issued a subpoena to Consensys in March, prompting the company to file a lawsuit in April, seeking a declaration from a Texas District Court that their Metamask offerings did not violate securities laws.
Despite the SEC’s silence on the status of Metamask’s services, Consensys has stated that their legal battle with the regulator is ongoing.
In a recent tweet, Consensys emphasized the importance of regulatory clarity for innovation, expressing their belief that it should not require a lawsuit to achieve such clarity, especially for the services offered on their wallet.
Attorney Rispoli explained that the lawsuit regarding Metamask’s services addresses the same concerns as the potential enforcement actions by the SEC, with the only differences being the parties’ positions and the burden of proof. He anticipated that the SEC would try to dismiss the Texas case and file an enforcement action in a more favorable jurisdiction, but this now seems unlikely following the closure of the SEC’s investigation.
Rispoli suggested that the outcome of the lawsuit will be crucial in revealing the SEC’s true position on Ethereum. If Consensys dismisses the lawsuit, the situation will remain unchanged. However, if they continue with the lawsuit, the underlying issues will still be litigated without the threat of fines and potential jail time.
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