Consensys calls SEC investigation closure a pivotal moment for Ethereum and blockchain innovation
The SEC has closed its investigation into Ethereum 2.0, determining that sales of ETH are not securities transactions. The decision comes after a letter from Consensys on June 7, seeking clarity following the May approvals of ETH ETFs, which were based on ETH being classified as a commodity. Consensys stated,
“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 will not bring charges alleging that sales of ETH are securities transactions.”
Ethereum rose over 4% overnight following the news, pulling the rest of the crypto market with it as many projects positive over the past 24 hours. Bitcoin is the notable exception, down 0.74% according to CryptoSlate data as of press time.
Consensys announced this development as a significant victory for Ethereum developers and the broader industry. The closure of the investigation signifies a pivotal moment for the Ethereum community, providing a reprieve from potential regulatory actions that could have categorized ETH as a security. The SEC’s decision aligns with the Commodity Futures Trading Commission’s (CFTC) stance, which has consistently classified ETH as a commodity.
Despite this positive outcome, Consensys continues its legal battle against the SEC to secure further regulatory clarity. The company argues that the SEC’s enforcement actions against blockchain developers and technology providers have been overly aggressive and unlawful. Consensys’s lawsuit also seeks a declaration that offering user interface software like MetaMask Swaps and Staking does not violate securities laws.
As Consensys emphasized, the legal fight is not just about Ethereum but about safeguarding the future of blockchain innovation in the United States. The SEC’s stance on Ethereum had posed a risk to adopting and developing blockchain technologies, with potential negative implications for US leadership in this sector. By challenging the SEC’s authority, Consensys aims to prevent what it describes as an unlawful power grab that could hinder technological advancements and economic opportunities.
The resolution of the Ethereum investigation marks a critical juncture, but Consensys insists that the broader regulatory environment still requires significant reform. The company’s lawsuit highlights the need for clear guidelines that support innovation while ensuring compliance with existing laws. As the blockchain industry evolves, resolving these regulatory issues will be crucial in determining the pace and direction of technological progress.
According to Consensys, fighting for regulatory clarity is essential to ensuring blockchain technology continues growing and contributing to the economy. The company’s actions reflect a broader concern within the crypto community about the need for balanced regulation that fosters innovation without stifling growth.
Industry participants and regulators alike will closely watch the outcome of Consensys’s ongoing legal battle with the SEC. The case highlights the tensions between regulatory oversight and technological innovation, a dynamic that will shape the future of blockchain technology and its applications. Via- Cryptoslate.

Despite partially approving the spot ETF applications for Ethereum, the SEC chair remained vague on whether it is classified as a commodity now.
SEC Chair Gary Gensler said the regulator expects to approve the spot Ethereum ETF applications’ S-1 registration forms “sometime over the course of this summer,” which would be the final step before the funds can launch in the US.
Gensler confirmed that the ETFs would be able to launch by the end of summer, well before the November presidential elections.
The watchdog recently approved the related 19b-4 applications filed by stock exchanges in May. However, the approval of S-1 registration forms from individual issuers is still pending.
Gensler said during a Senate hearing on June 13 that:
“Individual issuers are still working through the registration process. That’s working smoothly.”
Senator Bill Hagerty commended Gensler on committing to him that the applications would be approved by the end of summer. He added:
“We’ve gotta get this market.”
Launch timeline, commodity classification
Gensler’s timeline aligns with predictions made by industry experts in recent weeks.
Bloomberg ETF analysts suggested that the S-1 documents’ approval could take “weeks” to “months” following the 19b-4 approvals. Similarly, others, including JP Morgan, have predicted that the ETFs will begin trading before the November elections.
At this point, despite the pending S-1 approval, the introduction of spot Ethereum ETFs in the US is seen as inevitable. Furthermore, Ethereum is now considered a commodity by many in the industry, including legal experts, who argue that the SEC’s approval of Ethereum as a single-asset ETF product implies its classification as a commodity.
However, when questioned by the Senate, Gensler did not clarify whether Ethereum is classified as a security or commodity. He skirted the question and did not give a clear answer, claiming the agency had only “partially” approved Ethereum ETFs.
Meanwhile, CFTC Chair Rostin Behnam told the Senate very clearly that Ethereum was a commodity and should be supervised by his agency.
Concerns over budget stipulation
Gensler also addressed the SEC’s fiscal year 2025 budget request, highlighting the significant growth and changes in the markets. He said:
“Our limited resources contrast against the tremendous growth and change in our markets.”
He added that the SEC currently oversees approximately 40,000 entities, including more than 13,000 registered funds, 15,400 investment advisers, and 3,300 broker-dealers.
Gensler expressed concern over a stipulation in the agency’s fiscal year 2025 funding bill by the House Appropriations Committee, which restricts funds from being used for enforcement actions related to digital asset transactions, except for fraud or market manipulation.
Gensler said:
“It would seriously undercut our efforts. While not all cryptos are crypto securities… those that are have an obligation to disclose to the public full, fair, and complete information.”
The SEC chair highlighted the agency’s critical role in maintaining market integrity and protecting investors. He also emphasized the importance of adequate funding to keep pace with the rapidly evolving markets and technological advancements.
He told the Senate:
“The SEC is the cop on the beat watching out for the investing public and issuers.”
Data via- cryptoslate
#BinanceTournament #ETHETFsApproved #CPIAlert

Experts said the current reading show that the core inflation has dropped to its lowest since April 2021.
Bitcoin’s price has soared past $69,000 after the latest US Consumer Price Index (CPI) for May showed a slight decline.
Available data shows that the much-anticipated US CPI inflation data was better than several experts’ predictions.

Table showing US inflation data (Source: Trading Economics)
Charlie Bilello, the Chief Market Strategist at Creative Planning, said:
“Overall, US CPI moved down to 3.27% year-on-year in May from 3.36% in April. US inflation has now been above 3% for 38 straight months. US Core CPI (ex-Food/Energy) moved down to 3.41% year-on-year from 3.62% last month. This is the lowest core inflation reading since April 2021.”
Bilello further pointed out that the US Inflation rate has drastically reduced from the 9.1% peak of June 2022 to 3.3% today. He added that the decline in these numbers was caused by the “lower rates of inflation in used cars, gas utilities, apparel, food at home, gasoline, medical care, fuel oil, food away from home, shelter, and electricity.”
Bitcoin rises on optimistic CPI
The better-than-expected CPI numbers immediately had a positive impact on Bitcoin’s price, with the BTC rising by more than 2% on the 1-hour candle to as high as $69,377 as of press time.
Mike Alfred, a board member at IREN Energy, pointed outthat the movement showed that:
“Bitcoin already knows that CPI + Fed won’t be major bearish catalysts. It’s a highly intelligent global macro asset that prices in almost everything in advance.”
Meanwhile, the market attention has shifted to the US Federal Reserve, which will reveal its decision on current interest rates later today. Jesse Cohen, a Global Markets Analyst at Investing.com, said:
“The May CPI Inflation report could give the Fed the confidence to begin laying out the carpet for rate hikes in the months ahead. It’s going to take a minimum of three or four soft inflation prints before I think they’re ready to cut rates, but this would be a start.”
#BTCFOMCWatch #CPIAlert #ETHETFsApproved