- SEC has dropped investigation into Ether?
- Ether developer says it is a major win
- Ether developer wrote to the SEC on June 7 requesting that it end its investigation
The United States Securities and Exchange Commission (SEC) is set to close its investigation into Ethereum. The investigation hinges on whether Ether is a security or not.
This was disclosed by Ethereum developer Consensys in an X post on Wednesday, June 19, 2024.
“The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0,” Consensys said in the post. “This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.”
The firm described the development as a “major win for Ethereum developers, technology providers, and industry participants.”
As the regulator approved spot Ether exchange-traded funds (ETFs) in May, the company said it wrote to the SEC on June 7 requesting that it end its investigation into Ether. Consensys claims that the ETFs are "premised on ETH being a commodity," which is why the SEC made its decision.
Consensys’ post. Credit: X/Consensys
Consensys asks SEC to focus on its core regulatory tasks
In a statement on its website regarding the development, Consensys explained further:
“While we are gratified by the SEC’s decision to stand down on Ethereum, there is more work to be done to protect crypto in the United States. It is imperative that the SEC abandon its unprincipled and opaque regulation-by-enforcement campaign in favour of much-needed regulatory clarity for an industry that serves as the backbone of countless new technologies and innovations. In that light, our lawsuit also asks a federal court to find that we neither act as a broker nor issue securities through our software offerings MetaMask Swaps and Staking.”
The statement concluded by noting that “No company or individual should find itself in our position, having to resort to costly litigation to obtain clarity about what is and is not lawful. As we asserted in our lawsuit, ‘Consensys is built on creating software products that allow people around the world to use and build on top of the Ethereum network, and it is entitled to run its business without the cost, burden, and uncertainty of an unlawful enforcement action.
"The same is true for the crypto industry at large. We hope today’s development marks the beginning of a new path forward.”
5 simple ways to make money from crypto
Meanwhile, TheRadar earlier reported five simple ways in which people can make money from cryptocurrency.
Mining, staking and yield-farming are among the money-making strategies that work in the world of cryptocurrency and coins.
