Ethereum Celebrates Legal Victory as SEC Closes Investigation

The cryptocurrency market witnessed a shift in sentiment recently, with Ethereum emerging as a beacon of good news. Earlier today, Ethereum developer Consensys Software Inc. announced that the United States Securities and Exchange Commission (SEC) has closed its investigation into Ethereum’s native token, Ether (ETH).

Background of the Investigation

The SEC launched an investigation to determine whether Ether should be classified as a security, spurred by a lawsuit filed by Consensys in April. The SEC, led by Chairperson Gary Gensler, initially suggested that Ether might be considered a security, creating substantial uncertainty and concern within the cryptocurrency market.

How Ethereum Claimed This Win

Consensys outlined the steps leading to this victory in a detailed thread on their X (formerly Twitter) account. On June 7, Consensys sent a letter to the SEC seeking confirmation that the approval of spot Ether exchange-traded funds (ETFs) indicated the end of the investigation into Ethereum 2.0. Consensys emphasized that ETH tokens were foundational to the approval of these spot Ether ETFs, although the decision was not yet final.

Related article: Maximizing Ethereum Staking Rewards: Tips and Tricks

Official Response from the SEC

Laura Brookover, attorney for Consensys, shared the SEC’s response letter on social media. In her tweet, she noted:

“The SEC sent us a closing letter in the Ethereum 2.0 investigation today. Things have changed remarkably fast since we filed our lawsuit against the SEC in late April, culminating in today’s development. After more than a year, the Ethereum investigation is finally over with no…”

This response marked a significant milestone, bringing relief and celebration to the Ethereum community.

Ongoing Criticism of SEC’s Regulatory Approach

Despite this victory, Consensys continues to express concerns over the SEC’s regulatory tactics. The company argues that this win is not a comprehensive solution for blockchain developers, technology providers, and other industry participants adversely affected by the SEC’s stringent enforcement of crypto-related regulations.

Consensys maintains that while the closure of the investigation is a positive development, there remains a need for clearer and more supportive regulatory frameworks to foster innovation and growth within the cryptocurrency space.