The SEC has officially closed its investigation into Ethereum, confirming that ETH sales are not securities transactions. This decision follows a letter from ConsenSys asking the SEC to affirm Ether's status as a commodity after the May ETF approvals.
The SEC has officially closed its investigation into Ethereum, confirming that ETH sales are not securities transactions. This decision follows a letter from ConsenSys asking the SEC to affirm Ether’s status as a commodity after the May ETF approvals.
ConsenSys, an Ethereum developer, announced the news on June 28, celebrating it as a “major win for Ethereum developers, technology providers, and industry participants.” The company shared the SEC’s notification letter, marking the end of the investigation with no charges against anyone.
In their letter on June 7, ConsenSys asked the SEC to confirm that the approval of ETH ETFs, which was based on Ether being classified as a commodity, would lead to the closure of the Ethereum 2.0 investigation. ConsenSys attorney Laura Brookover shared the SEC’s notification letter, which confirmed the closure of the investigation.
ConsenSys highlighted Ethereum’s status as a global computing platform, emphasizing that it is not an investment scheme and that Ether (ETH) is a commodity, as confirmed by the CFTC. They also clarified that applications utilizing Ethereum for transactions are not securities brokers and thus not subject to SEC regulation.
Furthermore, ConsenSys criticized the SEC’s actions as an unlawful power grab, warning that such overreach could undermine America’s leadership in the next generation of the internet. They emphasized that this could pave the way for other nations to lead in developing an economy centered on the technological evolution of the internet.
Echoing a similar sentiment, Bill Morgan also highlighted the SEC’s inconsistent treatment of cryptocurrencies, pointing out the recent closure of the investigation into Ethereum as its “second free pass,” following the 2018 Hinman speech that stated Ethereum was not a security. He contrasts this with the SEC’s aggressive stance against Ripple (XRP), suggesting that the SEC’s actions are arbitrary and unfair, lacking consistency in its regulatory approach.
Following this news, Lookonchain noted a significant whale investor purchasing an additional 5,603 ETH ($19.6 million). Since May 30, this investor has withdrawn a total of 16,604 ETH ($59 million) from Binance at an average price of $3,600 each.
While the market is celebrating this move, it’s worth noting that the SEC’s statement includes standard language indicating that the closure does not necessarily clear the parties involved of all wrongdoing. However, the decision is widely seen as a victory for Ethereum and the broader crypto community seeking regulatory clarity.
