The US Securities and Exchange Commission dropped charges against Ethereum, the second largest cryptocurrency by capitalization, in which the regulator saw signs of an illegally issued security.

On June 19, 2024, Ethereum software developer Consensys announced that the US Securities and Exchange Commission (SEC) had withdrawn its claims against ETH.

We are talking about the SEC's attempts to recognize ETH as an illegally issued security. The reason for discussions about the status of Ethereum was the transition of the project to the PoS algorithm. Such cryptocurrencies, according to the commission members, do not pass the Howey test, which means they may be illegally issued securities.

Despite the SEC's doubts about Ethereum's status in 2024, the regulator has approved the launch of spot Ethereum ETFs in the United States. The Consensys team asked the Commission to comment on the status of ETH in the context of the tool's approval. The fact is that the illegal status of Ether should have become an obstacle to the issuance of spot Ethereum ETFs.

Members of the crypto community are confident that the SEC’s refusal to accept claims means that ETH is not a security. It turns out that the Commission considers Ethereum as a commodity.