SEC permanently suspends investigation into Ethereum

The cryptocurrency community has been fighting bears in recent days. But, in a new turn of events, the market is celebrating Ethereum’s victory. Earlier today, Ethereum developer Consensys Software Inc. announced in a blog post that the U.S. Securities and Exchange Commission is closing its investigation into Ethereum’s native token, Ether.

Consensys sued the SEC in April and began its investigation into whether Ether was classified as a security. In the lawsuit, the SEC openly suggested that the SEC and Gary Gensler, chairman of the agency, believed the altcoin was a security. However, in its post X, Consensys said,

“Today, we are pleased to announce a major victory for Ethereum developers, technology providers, and industry participants: the SEC’s Enforcement Division informed us that it is closing its investigation into Ethereum 2.0. This means that the SEC will not bring charges alleging that ETH sales are securities transactions.

Also Read: SEC Approves All Spot Ethereum ETFs

Here’s how Ethereum achieved this victory

The company behind Ethereum posted a thread on X describing the process behind its victory. On June 7, Consensys reportedly wrote to the SEC, seeking confirmation that approvals for the ether spot exchange-traded fund meant it would no longer consider investigating Ethereum 2.0. Consensys further noted that ETH tokens serve as the basis for the approval of spot Ether ETFs, although this is not final.

Laura Brookover, Consensys’ attorney, shared the SEC’s response letter and, in a separate tweet, wrote:

Despite its latest victory, Consensys continues to voice criticism of the SEC’s regulatory approach. The company stressed that the recent victory is not a “panacea” for blockchain developers, technology providers and industry players who have been harmed by the SEC’s strict enforcement of blockchain-related regulations. cryptography.

Also read: SEC Chairman Gensler: Ethereum ETF debut ‘will take a while’

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