Ethereum
SEC Closes Ethereum Investigation, Confirms ETH as Commodity
The SEC has officially closed its investigation into Ethereum, confirming that ETH sales are not securities transactions. The move follows a letter from ConsenSys asking the SEC to affirm Ether’s status as a commodity following the ETF approvals in May.
Consensys survives the SEC, but the battle continues
ConsenSys, an Ethereum developer, announced the news, celebrating it as a “major victory for Ethereum developers, technology providers, and industry participants.” Despite this victory, ConsenSys stressed that the regulatory battle with the SEC, led by Gary Gensler, continues.
In a June 7 letter, ConsenSys asked the SEC to confirm that approving ETH ETFs, based on ETH being a commodity, would result in the closure of the Ethereum 2.0 investigation. ConsenSys attorney Laura Brookover shared the SEC’s notification letter, marking the end of the investigation without any charges against anyone.
Finally, Ethereum is NOT a security
ConsenSys emphasized that Ethereum is a global computing platform, not an investment program, and that Ether (ETH) is a commodity, as confirmed by the CFTC. They also stated that applications using Ethereum for transactions are not securities brokers and are not regulated by the SEC.
Criticism of SEC Overreach
ConsenSys criticized the SEC’s actions as an illegal power grab, warning that such actions could undermine U.S. leadership in the next generation of the Internet. They stressed that this could open the door for other countries to take the lead in developing an economy based on the technological evolution of the Internet.
Echoing a similar sentiment, Bill Morgan critical the SEC for its inconsistent treatment of cryptocurrencies, highlighting the recent closure of the investigation into Ethereum as its “second free pass”, following the 2018 Hinman speech which declared that Ethereum was not a security . He contrasts this with the SEC’s aggressive stance against Ripple (XRP), suggesting that the SEC’s actions are arbitrary and unfair, demonstrating a lack of consistency in its regulatory approach.
Crypto impact
Shortly after this news, Lookonchain note that a major whale investor purchased an additional 5,603 ETH ($19.6 million). Since May 30, this investor has withdrawn a total of 16,604 ETH ($59 million) from Binance at an average price of $3,600 each.
While the market rejoices over the decision, the SEC’s statement includes boilerplate language that the shutdown does not necessarily absolve the parties involved of any wrongdoing, but the decision is seen as a victory for Ethereum and the crypto community at the moment. broad sense in search of regulatory clarity.