Benzinga - ConsenSys, a blockchain software company, announced a major victory for Ethereum (CRYPTO: ETH), following the closure of the SEC’s investigation into whether the world’s second-largest cryptocurrency is a security.
What Happened: On Tuesday, ConsenSys took to X to reveal that the regulator will not move forward with the charges alleging that sales of Ether are securities transactions.
The announcement followed a letter sent by ConsenSys to the SEC on June 7, asking for confirmation that the Ether spot ETF approvals last month, based on ETH being a commodity, would lead to the closure of the investigation.
ETHEREUM SURVIVES THE SEC.Today we're happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.
This means that the SEC…
— Consensys (@Consensys) June 19, 2024
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ConsenSys emphasized that the closure of the Ethereum investigation, while significant, does not resolve all issues faced by blockchain developers, technology providers, and industry participants under the SEC’s crypto enforcement regime.
The company now seeks a declaration that its software offering MetaMask Swaps and Staking does not violate securities laws.
The positive news also got whales excited, with one investor scooping 5,603 Ether, worth $19.6 million, in the aftermath, according to Lookonchain.
After @Consensys posted that the #SEC had closed its investigation into #Ethereum 2.0, the whale bought another 5,603 $ETH($19.6M).The whale has withdrawn 16,604 $ETH($59M) at an average price of $3,600 from #Binance since May 30.https://t.co/NYbgSJevaT pic.twitter.com/N3vsISPeyX
— Lookonchain (@lookonchain) June 19, 2024
Why It Matters: In April, ConsenSys alleged that the SEC had been covertly targeting Ethereum for over a year, scrutinizing its nature and whether it should be classified as a security.
In response, ConsenSys filed a lawsuit against the SEC, arguing that the SEC is overstepping its authority by attempting to regulate Ether.
For context, the CEO of ConsenSys, Joseph Lubin, was one of the co-founders of Ethereum.
Price Action: Reacting to the development, Ether spiked 3.32% to trade at $3,549.33, according to data from Benzinga Pro.
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