Home Business News SEC concedes defeat in battle against Ethereum, declares itself an Ether enthusiast

SEC concedes defeat in battle against Ethereum, declares itself an Ether enthusiast

by Thea Coates Finance Reporter
21st Jun 24 7:15 am

The U.S. Securities and Exchange Commission (SEC) has decided to close its investigation into Ethereum 2.0. This means the SEC won’t be charging anyone for selling Ether (ETH) as if it were a security.

The investigation, called “In the Matter of Ethereum 2.0 (C-08950),” started back in March 2023.

Consensys, a company that’s big in the Ethereum world, shared the good news on X (you know, the app formerly known as Twitter). They said:

  • The SEC’s Enforcement Division told them the investigation is closed
  • The SEC won’t bring charges saying ETH sales are securities transactions
  • This is a huge win for Ethereum developers, tech providers, and the whole industry

Consensys had argued that since the SEC approved ETFs based on Ether, it must be a commodity, not a security. The SEC agreed and closed the case without pointing any fingers.

Tobi Opeyemi Amure, an analyst at Trading.Biz, said, “The SEC closing its Ethereum 2.0 investigation is a good move for crypto. Although, it looks like a shot-yourself-on-the-foot situation.”

But hold up, the fight’s not over yet. Consensys is still battling the SEC in court over whether offering user interface software like MetaMask Swaps and Staking breaks securities laws. It’s a reminder that the crypto world still has some regulatory hurdles to jump through.

The SEC has been keeping a close eye on the crypto industry, and not everyone’s been happy about it. Some folks say the SEC’s been too tough, using a “regulation by enforcement” approach. This led to some big cases, like the lawsuit against Ripple Labs over selling XRP tokens.

But the SEC threw Ethereum a bone in May 2024 when it approved spot Ethereum ETFs. This was a big win, showing the SEC sees Ether as a commodity, not a security. It probably played a role in the SEC dropping the Ethereum 2.0 investigation.

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