Ethereum Secures Major Victory as SEC Ends Investigation into Securities Sale Allegations
The SEC has concluded its investigation into Ethereum 2.0, determining that ETH sales do not constitute securities transactions. This decision follows a letter from Consensys on June 7, which sought clarity after ETH ETFs were approved in May, classifying ETH as a commodity. Consensys announced,
“Today we’re thrilled to share a significant win for Ethereum developers, technology providers, and industry participants: the SEC’s Enforcement Division has informed us that it is closing its investigation into Ethereum 2.0. This indicates that the SEC will not pursue charges alleging that ETH sales are securities transactions.”
Ethereum surged over 4% overnight after the news, boosting the broader crypto market, with many projects showing positive gains over the last 24 hours. Bitcoin, however, is the notable exception, declining by 0.74% according to CryptoSlate data at the time of reporting.
Consensys heralded this development as a major triumph for Ethereum developers and the wider industry. The end of the investigation marks a critical moment for the Ethereum community, relieving them from potential regulatory actions that might have labeled ETH as a security. The SEC’s decision aligns with the Commodity Futures Trading Commission’s (CFTC) stance, which has consistently regarded ETH as a commodity.
