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- The SEC has closed its investigation into Ethereum 2.0, clearing ETH from being classified as a security.
- Despite the SEC’s decision, ConsenSys continues its lawsuit for regulatory clarity on MetaMask Swaps and Staking.
Today saw a big boost for the blockchain community as top Ethereum development firm ConsenSys revealed a critical milestone for Ethereum.
ConsenSys has received notification from the U.S. Securities and Exchange Commission (SEC) that it is closing its Ethereum 2.0 investigation. The continuous discussion about securities laws and cryptocurrency rules has reached a turning point with this ruling.
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
SEC Drops Ethereum 2.0 Investigation
ConsenSys announced that the Enforcement Division of the SEC has decided against filing charges claiming that ETH sales qualify as securities transactions.
This result follows a June 7 letter from ConsenSys asking the SEC to verify that the May approvals of ETH Exchange-Traded Funds (ETFs) signaled the end of the Ethereum 2.0 inquiry because ETH is a commodity.
Blockchain researcher Collin Brown and many other cryptocurrency enthusiasts applauded the announcement. ‘Ripple (XRP) will follow, knowing they are on the right side of history,’ Brown said. The crypto community, which has long been scrutinized by the SEC’s strict enforcement system, shares this opinion in large measure.
🚨BREAKING 🚨#Ethereum 2.0 gets the green light! SEC closes investigation, confirming ETH is not a security. Big win for developers and the crypto community! 😎#Ripple (#XRP) will follow, knowing they are on the right side of history! pic.twitter.com/vwqATokhkL
— Collin Brown (@CollinBrownXRP) June 19, 2024
ConsenSys underlined that the fight is far from finished, even with the SEC’s ruling. The company is still suing to have the MetaMask Swaps and Staking user interface software declared to not be in violation of securities laws.
ConsenSys said that obtaining the regulatory certainty required for the blockchain sector to flourish—which is essential to many new technologies and innovations—should not require a lawsuit.
Current Market Reaction
The news is helping ETH’s price. CoinMarketCap reports that the price of ETH at the moment of writing is at $3,567.10, up 3.48% over the previous day. With a 1.26% increase over the last week, ETH has remained bullish, reflecting robust market confidence in the wake of the SEC ruling.
Previous to this, CNF reported on updated estimates from Bloomberg ETF analyst Eric Balchunas that Ethereum ETFs may start trading as early as July 2. This move strengthens confidence in Ethereum and the larger crypto market by offering a more controlled and stable setting for business expansion.
