SEC closes the Ethereum 2.0 investigation, signaling potential regulatory clarity.
Ethereum price recovers from yesterday’s one-month low.
Consensys, a blockchain software company announced that the U.S. Securities and Exchange Commission’s enforcement division has notified the company that it is closing its investigation into Ethereum 2.0 –the crypto community has greatly celebrated this news.
In its official tweet posted hours ago, it wrote “Ethereum survives the SEC,” adding, “This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.”
ETHEREUM SURVIVES THE SEC.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…
— Consensys (@Consensys) June 19, 2024
Notably, On April 25, Consensys filed a litigation against the SEC. Opposing the agency’s categorization of ether as a financial security. This move came amid concern from policymakers and the public over the SEC’s Ethereum 2.0 investigation. On June 7, Consensys sent a letter asking the SEC to confirm that the ETH ETF approvals in May, predicated on ether being a commodity. It meant the agency would close its Ethereum 2.0 investigation.
Today as aforementioned, the Enforcement Division responded by notifying that it is closing its investigation into Ethereum 2.0. And will not pursue an enforcement action against Consensys.
A Momentous Step?
“While we are gratified by the SEC’s decision to stand down on Ethereum, there is more work to be done to protect crypto in the United States. The SEC must abandon its unprincipled and opaque regulation-by-enforcement campaign. In favor of much-needed regulatory clarity for an industry that serves as the backbone to countless new technologies and innovations.”, Consensys Stated.
Moreover, Consensys also seeks federal court to find that they neither act as a broker nor issue securities. Through their software offerings MetaMask Swaps and Staking. Adds, “No company or individual should find itself in our position. Having to resort to costly litigation to obtain clarity about what is and is not lawful.”
At a time when altcoins facing a heavy dip, this recent news revived hope in the community. Currently, Ethereum sees a 3% surge, trading at $3554. And notably, ETH hit a one-month low of $3355 yesterday.
Concluding, the community believes that this is one of the major steps towards countering what they see as the SEC’s stringent crypto regulations.
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