SEC Closes Ethereum Investigation, Affirms ETH as Commodity
Is Ether a Security? The SEC Finally Answers
Dear Readers!
The United States Securities and Exchange Commission (SEC) has announced the closure of its investigation into whether Ether (ETH) is a security. This development marks a significant turn in the ongoing scrutiny of Ethereum.
Official Statement from Consensys
On June 19, Ethereum developer Consensys shared the news via an X post:
"The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0." The post highlighted that the SEC will not bring charges against sales of ETH, celebrating this decision as a "major win for Ethereum developers, technology providers, and industry participants."
Background on the Investigation
Source: US SEC
The decision by the SEC follows a letter sent by Consensys to the agency on June 7. In this letter, Consensys questioned the rationale behind the investigation, especially after the SEC approved spot ETH exchange-traded funds (ETFs) in May, suggesting that ETH was considered a commodity.
Laura Brookover, Consensys' senior counsel, shared the SEC’s response letter, which confirmed that the agency does not “intend to recommend an enforcement action.” This response provided some relief to the Ethereum community.
Previous SEC Actions
In March, Fortune reported that the SEC had issued subpoenas to multiple companies as part of efforts to label ETH as a security. Following this, Consensys filed a lawsuit against the SEC in April, after receiving a Wells notice from the agency. The notice indicated that the MetaMask crypto wallet might have violated securities laws.
Ongoing Legal Battle
Despite the closure of this particular investigation, the legal battles are not over. Consensys has claimed that the SEC, led by Chair Gary Gensler, has considered ETH a security since early 2023. According to the lawsuit, Gurbir Grewal, head of the SEC’s Division of Enforcement, approved a formal order of investigation into Ether’s status on March 28, 2023.
In its latest statement, Consensys confirmed that their lawsuit against the SEC is still ongoing. The outcome of this legal dispute remains to be seen, but for now, Ethereum has scored a notable victory.
Also Read
Top reasons behind the recent altcoin flash crash
Top Analysts Predict Final Crypto Capitulation Before Major Recovery, Comparing 2024 to 2016
Dogecoin Finds Major Bullish Catalyst in Elon Musk X Payments
Any Feedback?
Get in touch with us here