The United States Securities and Exchange Commission (SEC) has officially ended all its investigation into Ethereum, the second-largest crypto in the world.
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Ethereum developer ConSenSys announced the news on Wednesday. They shared that the SEC’s Enforcement Division has officially notified them that it is closing the Ethereum 2.0 investigation, meaning that the SEC will never again bring any charges claiming that sales of ETH are securities transactions.
Consensys celebrates, but the fight continues
Consensys expressed their joy in a Twitter post, calling this a “major win for Ethereum developers, technology providers, and industry participants.” However, the company also assured the community that the regulatory fight with Gary Gensler’s SEC is far from over.
It should not take a lawsuit to provide the much-needed regulatory clarity to allow an industry that serves as the backbone to countless new technologies and innovations to thrive – But here we are.
ConSenSys
The decision came after Consensys sent a letter on June 7. In the letter, they asked the SEC to confirm that the May ETH ETF approvals, which were based on ETH being a commodity, would lead to the closing of the Ethereum 2.0 investigation. Consensys attorney Laura Brookover shared the SEC’s notification letter. She stated:
Things have changed remarkably fast since we filed our lawsuit against the SEC in late April, culminating in today’s development. After more than a year, the Ethereum investigation is finally over with no charges against anyone.
Ethereum is NOT a security
Consensys emphasized that Ethereum is a global computing platform, not an investment scheme. They reiterated that Ether (ETH) is not a security but a commodity, as confirmed repeatedly by the Commodity Futures Trading Commission (CFTC).
Related: SEC’s top crypto enforcer announces his resignation
The company also stressed that applications that allow people to transact independently using Ethereum are not securities brokers and, therefore, cannot be regulated by the SEC.
Consensys criticized the SEC’s actions, calling them an unlawful power grab. They warned that such actions could undermine America’s position as a leader in the next generation of the internet. According to them, this opens the door for other countries, especially hostile foreign adversaries, to take control of the development of an economy built on the technological evolution of the internet.
