Ethereum (ETH) has just bagged a major win against the United States Securities and Exchange Commission (SEC).
Ethereum No Longer Under Probe
According to crypto infrastructure services provider ConsenSys, the SEC’s Enforcement Division has notified of its suspension of the investigation into Ethereum 2.0. Markedly, this suspension is permanent and it means that the regulator will not file any lawsuit claiming the sales of ETH at any time constitute a securities offering.
ETHEREUM SURVIVES THE SEC.
Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.
This means that the SEC…
— Consensys (@Consensys) June 19, 2024
This was a major concern a few months ago when the investigation update hit the market. A related lawsuit into XRP has cost Ripple millions of dollars in litigation since December 2020. The markets regulator showcased its turnaround in May when it gave its approval to 8 spot Ethereum ETF products.
After this approval, ConsenSys confirmed that it sent a letter to the regulator on June 7. In the letter, the firm demanded to know if the spot Ethereum ETF greenlight implied the coin is now deemed a commodity or not.
As a core development partner for Ethereum, ConsenSys took the probe on the coin personally. The firm filed a lawsuit against the US SEC in April over claims of Ethereum being a security.
More Demand for Clarity
One major concern industry insiders have shared is that it should not take litigation for the regulator to provide needed clarity. Over the past year, crypto firms have suffered aggressive enforcement actions from the SEC.
In order to prevent situations like the Robinhood and Uniswap Wells Notices, ConsenSys has demanded clarity for its own product MetaMask. The firm wanted to know if the swapping and staking feature on the app constitutes securities in the regulator’s definition. From its post, the SEC is yet to comment on this request.
The SEC probe suspension has pushed Ethereum out of the bear zone. At the time of writing, the coin is up 2.77% in the past 24 hours to $3,543.14.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of Crypto-Vanguard’s content as such. Crypto-Vanguard does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.