Consensys Software Inc. has hailed a significant victory for the blockchain industry after the U.S. Securities and Exchange Commission’s (SEC) enforcement division notified them of the closure of its investigation into Ethereum 2.0.

In a recent post on X, Consensys expressed relief over the SEC’s decision, emphasizing that it signals the regulator will not pursue charges alleging that sales of Ether (ETH) constitute securities transactions. This development follows Consensys’ proactive outreach to the SEC, seeking clarification in light of recent approvals for spot ether exchange-traded funds (ETFs) in May. These approvals were based on the understanding that ETH tokens are commodities, as detailed by Consensys in their statement.

Earlier this year, Consensys took a firm stance against the SEC’s classification of ether as a financial security, filing a lawsuit in April. The lawsuit alleged that Gurbir Grewal, Director of the SEC’s Division of Enforcement, had initiated an investigation into Ethereum 2.0 in March 2023, targeting entities involved in ETH transactions. Consensys further claimed to have received a wells notice from the SEC, signaling potential enforcement action against them.

While SEC Chair Gary Gensler has refrained from directly addressing whether ether should be classified as a security, the Commodity Futures Trading Commission Chair Rostin Behnam has categorically defined ether as a commodity, adding another layer of complexity to the regulatory landscape.

Consensys affirmed their commitment to continue their legal battle, noting ongoing efforts to secure a declaration that their MetaMask Swaps and Staking user interface software complies with securities laws.

The SEC’s decision to close the Ethereum 2.0 investigation marks a pivotal moment in the ongoing regulatory saga surrounding cryptocurrencies, particularly ETH. As the industry navigates evolving regulatory frameworks, Consensys remains at the forefront, advocating for clarity and regulatory alignment beneficial to the blockchain ecosystem.

Despite Consensys’ optimism, the SEC has not responded to requests for comment from The Block regarding these recent developments, leaving stakeholders and market participants eagerly awaiting further regulatory guidance in the crypto space.