The SEC Investigation into Ethereum 2.0: A Clear Verdict

The SEC has closed its investigation into Ethereum 2.0, determining that sales of ETH are not securities transactions. The decision comes after a letter from Consensys on June 7, seeking clarity following the May approvals of ETH ETFs, which were based on ETH being classified as a commodity. Consensys stated,

“Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.

This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.”

Ethereum rose over 4% overnight following the news, pulling the rest of the crypto market with it as many projects positive over the past 24 hours. Bitcoin is the notable exception, down 0.74% according to CryptoSlate data as of press time.

Consensys announced this development as a significant victory for Ethereum developers and the broader industry. The closure of the investigation signifies a pivotal moment for the Ethereum community, providing a reprieve from potential regulatory actions that could have categorized ETH as a security. The SEC’s decision aligns with the Commodity Futures Trading Commission’s (CFTC) stance, which has consistently classified ETH as a commodity.

Despite this positive outcome, Consensys continues its legal battle against the SEC to secure further regulatory clarity. The company argues that the SEC’s enforcement actions against blockchain developers and technology providers have been overly aggressive and unlawful. Consensys’s lawsuit also seeks a declaration that offering user interface software like MetaMask Swaps and Staking does not violate securities laws.

As Consensys emphasized, the legal fight is not just about Ethereum but about safeguarding the future of blockchain innovation in the United States. The SEC’s stance on Ethereum had posed a risk to adopting and developing blockchain…