ETH Price Soars by 3% as SEC Halts Investigation into Ethereum 2.0

In a landmark decision, the United States Securities and Exchange Commission (SEC) has closed its investigation into Ethereum 2.0 without filing charges. This resolution which was announced by blockchain company Consensys comes as a significant step forward for both Ethereum and the broader crypto community seeking regulatory clarity.

“A Major Win”

In a post on X, Consensys called the SEC’s decision to end the Ethereum probe is “major win” adding that the agency will not bring charges alleging that sales of ETH are securities transactions. 

According to the Consensys, the latest development comes after they sent a letter on June 7, asking the agency to confirm that the spot Ether exchange-traded fund approvals in May meant that it would end its investigation into Ethereum 2.0.

Consensys emphasized that Ether (ETH) is categorized as a commodity, a stance endorsed by the CFTC, and restated Ethereum’s status as a worldwide computing platform rather than an investment plan. They further stated that applications using Ethereum for transactions are not securities brokers and hence are not subject to SEC regulation.

Recall that the legal tussle dates back to April when the blockchain development company received a wells notice from the SEC in April, indicating the agency’s intention to take enforcement action. In response, the firm filed a lawsuit against the regulator, opposing the agency’s categorization of ether as a security. The company argued that ether did not possess the attributes of a security and that the SEC had previously stated that ether was not within its jurisdiction.

Despite this encouraging outcome, Consensys and the SEC continue to battle for regulatory clarification, with the blockchain firm seeking a declaration that offering user interface tools like MetaMask Swaps and Staking does not violate securities laws.

“The closing of the Ethereum investigation is momentous, but it’s not a cure-all for the many blockchain developers, technology providers, and industry participants who have suffered under SEC’s unlawful and aggressive crypto enforcement regime. Our fight continues”, Consensys stated. 

Market Reaction

Following this announcement, Ethereum, the second-largest crypto by market capitalization increased by 3.18%, reaching $3,530 at press time. The decision has also had a favorable impact on other Ethereum-related coins, like Maker (MKR), Lido DAO’s governance token (LDO) and Ethereum Name Service (ENS).