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NAIROBI (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Ethereum 2.0, as announced by Consensys on June 19. This decision eliminates a major regulatory hurdle and boosts the prospects for an Ethereum Exchange-Traded Fund (ETF) in July.
“The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0,”Consensys stated. “This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.”
SEC Ends Investigation into Ethereum 2.0
In a statement, Consensys revealed that the SEC’s Enforcement Division has closed its investigation into Ethereum 2.0, indicating no charges will be brought against ETH sales as securities transactions.
Source: Consensys
The investigation’s closure follows a letter sent by Consensys to the SEC on June 7, which questioned whether the agency’s approval of spot Ether ETFs in May implied an end to the investigation. The SEC’s response, shared by Consensys senior counsel Laura Brookover, stated that the agency did not intend to recommend any enforcement action against Ethereum.
Consensys sued the SEC in April, alleging the regulator’s actions were an attempt to control the future of cryptocurrency. The lawsuit, however, remains active as Consensys seeks further regulatory clarity, particularly concerning the legality of offering user interface software like MetaMask Swaps and Staking.
Ethereum Price Rises After SEC’s Decision
Following the announcement, Ethereum’s price increased by 2.86% within 24 hours, reaching $3,546.54. This rise reversed several days of declines attributed to aggressive futures selling.
Ethereum Exchange Reserve. Source CryptoQuant
Recent data from CryptoQuant shows Ethereum exchange reserves have declined from 18.7 million ETH to 16.7 million ETH in 2024. This trend suggests investors move their ETH holdings off exchanges, indicating strong confidence and a bullish outlook. The reduced supply on exchanges can lead to higher prices, reflecting positive market sentiment, especially following the SEC’s closure of its investigation.
SEC Chair Gensler on Ether ETF Approvals
SEC Chair Gary Gensler indicated that final approvals for Ethereum ETFs are expected this summer. During a June 13 hearing before the Senate Appropriations Subcommittee on Financial Services, Gensler stated, “Individual issuers are still working through the registration process that’s working smoothly.” He emphasized that ultimate approval depends on the quality of investor disclosures.
This timeline aligns with Bloomberg analyst Eric Balchunas’s prediction. Balchunas forecasted that Ether Spot ETFs could start trading by July 2, with approvals likely before the July 4 holiday. He noted that the SEC’s recent actions suggest a favorable outlook for Ethereum ETFs.
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