SEC Halts Ethereum 2.0 Investigation Amid Election Focus, ETH Soars!

ethereum sec
Table of Contents


  • The SEC has concluded its investigation into Ethereum, confirming that ETH sales are not securities transactions.
  • ConsenSys celebrated the decision as a victory for developers and the industry, but warned that the regulatory battle with the SEC continues.
  • The market has reacted positively, with ETH registering a daily increase of 4%, trading at $3,540.

In a historic decision, the United States Securities and Exchange Commission (SEC) has concluded its investigation into Ethereum, confirming that ETH sales do not constitute securities transactions. The ruling follows a formal request from ConsenSys, a key developer in the Ether ecosystem, urging the regulatory body to reaffirm ETH’s status as a commodity after the approval of ETFs in May.

ConsenSys celebrated this decision as a significant victory for Ethereum developers, technology providers, and industry participants. However, the company clarified that the battle with the SEC, under the leadership of Gary Gensler, is far from over.

On June 7, ConsenSys sent a letter to the SEC seeking confirmation that the approval of ETFs based on ETH, considering Ether as a commodity, would lead to the closure of the Ethereum 2.0 investigation. Laura Brookover, an attorney for the company, shared the SEC’s notification confirming the end of the investigation with no charges against any parties.

ConsenSys reaffirmed that Ethereum is a global computing platform and not an investment scheme, highlighting that Ether (ETH) is classified as a commodity, a view supported by the Commodity Futures Trading Commission (CFTC). They also clarified that applications using ETH for transactions are not securities brokers and therefore are not subject to SEC regulation.

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Ethereum Wins, But the Battle Continues

Despite the celebration, there are still concerns about the SEC’s inconsistent approach toward cryptocurrencies. ConsenSys characterized the regulator’s actions as an unlawful power grab, warning that such maneuvers could jeopardize America’s leadership in the next generation of the internet, allowing other countries to take the lead in developing an economy rooted in technological advancements.

The market has reacted positively to this news. A recent investor acquired 5,603 ETH, valued at $19.6 million, and since May 30, has withdrawn a total of 16,604 ETH, equivalent to $59 million, from Binance at an average price of $3,600 each. According to CoinMarketCap, ETH is trading at $3,540, registering a daily increase of 4%.

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Although the SEC’s statement included standard language indicating that the closure does not necessarily exonerate the parties involved from any wrongdoing, this decision is seen as a victory for the broader crypto community seeking regulatory clarity. With the investigation closed, the listing and trading of ETFs in the United States and Hong Kong are expected to boost ETH’s price growth and strengthen its position as a leader in the Web3 and smart contract space.


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