Ether Price Rises Following SEC's Decision Not to Enforce Action Against Consensys

According to CoinDesk, the U.S. Securities and Exchange Commission (SEC) has concluded its investigation into technology incubator company, Consensys, and has decided not to recommend any enforcement action against it. This news led to a rise in the price of ether. Consensys, known for products like the MetaMask wallet, received two letters from the SEC confirming the end of the investigation. The SEC stated that it was 'closing its investigation into Ethereum 2.0.'

The letters, titled 'Re: In the Matter of Ethereum 2.0 (C-08950),' did not explicitly mention the blockchain associated with the second-largest cryptocurrency by market capitalization. One of the letters read, 'We have concluded the investigation in the above-referenced matter. Based on the information we have as of this date, we do not intend to recommend an enforcement action by the Commission against your client, Consensys Software Inc.'

However, the SEC clarified that the conclusion of an investigation does not mean there will never be an enforcement action. The Commission may advise a person under inquiry that its formal investigation has been terminated, but this does not indicate that the party has been exonerated or that no action may ultimately result from the staff’s investigation of that particular matter.

A second letter from the SEC reiterated the conclusion of the investigation and disagreed with any factual statements or legal conclusions expressed by Consensys' own attorneys in a letter sent to the regulator asking about ETH's status as a security given the SEC's approval of certain spot ether exchange-traded fund application filings.

Consensys had previously sued the SEC in April, alleging that the regulator was investigating whether Ethereum, post-merge, might be a security. Following the SEC's decision, ether's price rose by as much as 2.6%, according to data from TradingView. It has increased around 3% over the last 24 hours, as per data from CoinGecko. The CoinDesk 20 Index (CD20), a measure of the broader crypto market, has added 1.2%.