The U.S. Securities and Exchange Commission (SEC) is closing its investigation into whether Ether (ETH) is a security, according to Ethereum developer Consensys.
SEC Halts Probe into Ethereum 2.0
In a June 19 post on X (formerly Twitter), Consensys announced that the SEC’s Enforcement Division has decided to close its investigation into Ethereum 2.0. “This means that the SEC will not bring charges alleging that sales of ETH are securities transactions,” the firm stated, celebrating the decision as a “major win for Ethereum developers, technology providers, and industry participants.”
The SEC did not immediately respond to requests for comment on the matter.
Background on the Investigation
The SEC’s scrutiny began in March when Fortune reported that the commission had issued subpoenas to multiple companies in an effort to classify ETH as a security. Consensys responded by suing the SEC in April, accusing the regulator of attempting to “seize control over the future of cryptocurrency.” Despite the SEC’s recent decision, Consensys emphasized that their fight with the regulator is not yet over.
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Implications for the Crypto Industry
The closure of this investigation is a significant development for the broader cryptocurrency industry. It sets a precedent that could influence how other cryptocurrencies are regulated and perceived. With regulatory clarity from the SEC, developers and investors might feel more confident in engaging with Ethereum and similar projects. However, Consensys’s continued vigilance suggests that regulatory challenges are far from over, and the industry must remain proactive in addressing potential future scrutiny.
