US SEC Ends Investigation into Ethereum’s Ether as a Security
The United States Securities and Exchange Commission (SEC) has concluded its inquiry into whether Ethereum’s Ether token should be classified as a security, according to Consensys, a prominent Ethereum developer. Consensys announced in a post on June 19 that the SEC’s Enforcement Division had informed them of the investigation’s closure.
The decision means that the SEC will not pursue charges claiming that the sales of ETH are securities transactions. Consensys hailed this as a significant victory for the Ethereum community and the development and technology sectors associated with the cryptocurrency.
After the SEC’s recent approval of Ethereum spot exchange-traded funds (ETFs), Consensys reached out to the regulatory body to inquire about the implications of these funds, which were based on the classification of ETH as a commodity. The SEC’s decision to end the investigation prompted Consensys to send a letter to the agency, expressing its satisfaction with the outcome.
Consensys attorney Laura Brookover shared the SEC’s official response and a detailed company statement regarding the investigation’s conclusion. She noted the rapid changes that occurred since Consensys filed its lawsuit against the SEC in April, ultimately leading to the investigation’s end. Brookover emphasized that after more than a year, the Ethereum investigation concluded without any charges against individuals involved.
The SEC’s letter did not definitively classify Ethereum but instead used legal language to indicate that the investigation’s closure does not imply agreement with Consensys’ assertions.
In April, Consensys filed a lawsuit against the SEC, accusing it of excessive regulation and claiming that the agency was overly aggressive in attempting to control the future of cryptocurrency. The lawsuit alleged that the SEC intended to label Ethereum as a security and argued that the agency’s authority was limited to regulating securities. Consensys also challenged the SEC’s warning that its MetaMask wallet might violate securities laws.
Consensys reiterated its opposition to the SEC’s actions regarding MetaMask in its June 19 statement and stated its intention to continue fighting the agency on this matter. The company emphasized the need for regulatory clarity to support an industry that plays a crucial role in numerous technological advancements and innovations.
Following the news of the SEC’s investigation conclusion, the price of Ethereum experienced a rally and is currently trading above $3,500, showing a nearly 3.5% increase in the past 24 hours.
