The US Securities and Change Fee (SEC) has closed its investigation into whether or not Ethereum (ETH), needs to be categorized as a safety.
Ethereum developer Consensys introduced in June 19 through an X post that the SEC’s Enforcement Division had notified them in regards to the conclusion of the investigation into Ethereum 2.0. The put up reads:
In the present day we’re pleased to announce a serious win for Ethereum builders, expertise suppliers, and business members: the Enforcement Division of the SEC has notified us that it’s closing its investigation into Ethereum 2.0.
Which means the SEC won’t carry prices alleging that gross sales of ETH are securities transactions.
A sigh of aid
Consensys had beforehand despatched a letter to the SEC on June 7, requesting clarification on the standing of the investigation, citing the agency’s approval of spot Ethereum exchange-traded funds (ETFs) in Might. Such an approval purportedly implied that ETH was thought of a commodity.
Laura Brookover, senior counsel at Consensys, shared the SEC’s response letter, confirming that the company didn’t intend to advocate an enforcement motion. The SEC has not but supplied an official touch upon the matter.
Hyperlink to the SEC’s letter: https://t.co/1CGbnrtQy0
— Laura Brookover (@laurabrooksie1) June 19, 2024
In March, experiences emerged that the SEC had issued subpoenas to several companies in an try and label ETH as a safety. Nonetheless, Consensys’ lawsuit against the SEC over its discover suggesting that the MetaMask crypto pockets might have violated securities legal guidelines continues to be ongoing.
The lawsuit claimed that the SEC and its chairman, Gary Gensler, had believed ETH to be a safety since early 2023, with the SEC’s Division of Enforcement Director, Gurbir Grewal, approving a proper order of investigation on March 28, 2023.
The decision of the SEC’s investigation into Ethereum’s safety standing is anticipated to supply readability and aid for the Ethereum group and the broader cryptocurrency industry.