Consensys head of litigation Laura Brookover stated in a recent interview with CNBC that the company plans to continue its legal battle with the SEC in order to seek regulatory clarity for digital assets. Despite the end of an investigation into Ethereum 2.0, Brookover highlighted that the SEC did not provide any clear classification for Ethereum. The firm is currently facing two ongoing investigations related to securities laws regarding the swap and staking features of its MetaMask wallet. The regulator previously issued a Wells notice to Consensys, indicating its intent to take enforcement action on these matters.
Brookover emphasized that Consensys will continue to fight for clarity around digital assets in order to obtain relief from the lawsuit it filed in April. The SEC’s decision to end one investigation on Ethereum protocol does not provide the desired clarity, according to Brookover. She expressed disappointment in the lack of transparency from the SEC regarding the reasons for ending the investigation. Brookover speculated that external pressure may have influenced the SEC’s decision, but stressed the importance of clear regulations for companies operating in the crypto sector.
Brookover criticized the SEC’s approach of “regulation by enforcement,” calling for more collaboration with the industry to establish clear guidelines. She noted that the current system of waiting for oral arguments during enforcement actions does not provide a reliable way for companies to understand the SEC’s stance on digital assets. Brookover also highlighted the SEC’s approval of spot Ethereum ETF rule changes in May as part of the agency’s evolving stance on Ethereum. She urged the SEC to adopt a more proactive and transparent approach to regulation in the crypto sector.
In conclusion, Consensys is determined to continue its legal battle with the SEC in order to seek clarity around digital assets. Despite the end of an investigation into Ethereum 2.0, the SEC has not provided any clear classification for Ethereum. Consensys is facing two ongoing investigations related to securities laws regarding the swap and staking features of its MetaMask wallet. Brookover criticized the SEC’s approach of “regulation by enforcement” and called for more collaboration with the industry to establish clear guidelines for companies operating in the crypto sector. She emphasized the importance of transparency and clarity in regulatory processes to ensure a fair and stable environment for digital asset companies.
