XRP news today: SEC ends investigation into Ethereum 2.0, Ripple’s future

In addition, the decision could impact the upcoming court ruling on Coinbase’s (COIN) preliminary appeal motion.

SEC vs. Coinbase: Consensys and Coinbase’s Motion for Interim Appeal

Coinbase filed a motion for preliminary appeal in April 2024 to challenge the court’s ruling, largely denying Coinbase’s motion to dismiss (MTD).

Judge Failla did not dismiss the charge against Coinbase of acting as an unregistered securities exchange and suspected that

“The Court concludes that defendants’ motion must be largely denied because the complaint’s substantiated allegations plausibly support the SEC’s claim that Coinbase is an unregistered securities broker.”

Crypto attorney MetaLawMan highlighted the potential consequences of the SEC dropping its investigation into Consensys, saying:

“SEC lawyers repeatedly (and successfully) argued in the Coinbase hearing: Digital asset + ecosystem = security. But now they admit that ETH (a digital asset + ecosystem) is NOT a security.”

If Judge Failla considers the SEC’s stance against Consensys, she could grant Coinbase’s motion for preliminary appeal. A victory for Coinbase against the SEC would further dent the SEC’s hopes of overturning the ruling on the programmatic sale of XRP.

The SEC’s plans to appeal the ruling on the programmatic sale of XRP remain an obstacle.

Stuart Alderoty, Chief Legal Officer of Ripple, responded to the news on X (formerly Twitter) and posted:

“A big win for Consensys, although questions remain. Does this mean that the SEC does not consider Consensys’ offers and sales of ETH to be securities transactions and/or that ETH itself is not a security? What will Gensler say if asked now? What is the status of MetaMask and staking? This is not how a government can regulate.”

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