Ethereum secures ‘big win’ as SEC drops investigation

Ethereum has scored a “major victory” as the SEC concludes its investigation into Ethereum 2.0 and confirms that ETH sales are not considered securities transactions.

Ethereum, the second-largest cryptocurrency by market capitalization, has scored a significant victory as the U.S. Securities and Exchange Commission’s (SEC) Enforcement Division announced the completion of its investigation into Ethereum 2.0, blockchain company Consensys said in an X-post.

The SEC’s decision means that the agency “will not bring charges alleging that ETH sales constitute securities transactions,” Consensys explains.

“The conclusion of the Ethereum investigation is significant, but not a panacea for the many blockchain developers, technology providers and industry participants who have suffered under the SEC’s unlawful and aggressive crypto enforcement regime.”

Consensus system

The latest development follows a June 7 letter from Consensys to the SEC seeking confirmation that the recent approval of spot Ethereum exchange-traded funds (ETFs), which assume ETH is a commodity, would lead to the termination of the Ethereum 2.0 investigation.

Despite the positive outcome, the battle for regulatory clarity between Consensys and the SEC continues as the blockchain company seeks a declaration that offering user interface software such as MetaMask swaps and staking does not violate securities laws.

The conclusion of the investigation represents a significant step forward for Ethereum and the entire industry, which has been grappling with regulatory uncertainty and enforcement actions of late. Following the news, ETH price rose 3% and is now trading at $3,555, according to data from CoinMarketCap.