Ethereum is no longer investigated
The U.S. Securities and Exchange Commission (SEC) made the decision. Without examining whether Ethereum (ETH) qualifies as a security, According to Ethereum developer Consensys.
Consensys was officially announced by the SEC Enforcement Division on June 19th. We have concluded our investigation into Ethereum 2.0.
“The SEC will not bring charges alleging that the sale of ETH is a securities transaction.” The company described this decision as a major win for developers, technology providers, and industry stakeholders in the Ethereum ecosystem.
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The SEC’s decision follows a letter sent by Consensys on June 7 asking it to confirm whether it has closed its investigation into Ethereum. this is Consensys argued that the SEC’s approval of a spot Ether exchange-traded fund (ETF) last May was based on the recognition of ETH as a commodity rather than a security.
Laura Brookover, Senior Counsel at Consensys, shared the SEC’s response letter confirming that the agency: “It is not our intention to recommend enforcement action.”
ConsenSys filed a lawsuit against the SEC in April. Immediately after receiving it from the company Wells Notice From the agency. The notice suggested that Consensys’ product, the MetaMask cryptocurrency wallet, may have violated securities laws.
The lawsuit alleges that the Enforcement Directorate, led by SEC Chairman Gary Gensler and Commissioner Gurbir Grewal, ETH will be treated as a security from at least 2023. Consensys highlighted that Grewal approved ordering a formal investigation into the security state of ETH on March 28, 2023.
Even though the SEC has closed its investigation into Ethereum 2.0, the lawsuit launched by Consensys is still active, highlighting the ongoing tensions between regulators and the cryptocurrency industry.
In other news, the SEC recently rejected Ripple’s request to reduce its fine, arguing that it was inadequate.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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