Consensys, the company behind Ethereum, has announced that the SEC has ended its investigation into ETH. The issue at hand was whether ETH is a security or a commodity.
SEC closes significant investigation
Consensys, the company behind Ethereum, has just announced that the SEC has closed its investigation into whether ETH is a security or a commodity. If it were found to be the latter, ETFs could not be created.
The May decision on approving ETH ETFs effectively closed the investigation. As the regulators told ETF issuers, "yes," they recognized ETH as a commodity, not a security.
However, the question remains: what happens now? Consensys sent a letter to the SEC asking what is happening in terms of the investigation after approval of ETF applications. The Commission responded by stating that it is no longer conducting an investigation.
"The SEC Enforcement Division informed us that it has closed its investigation into Ethereum 2.0," said Consensys. "This means that SEC will not bring any charges related to allegations that selling ETH is a security transaction." - The company explained further.
The price of ETH reacted to this news with gains. Today, one ether can be bought for $3523 USD, which translates to a 2% jump in 24 hours and a return to the price level before 7 days ago.
But does this mean that Ethereum has won entirely?
Not necessarily. While ether as an investment instrument is already considered safe in the US, it is clear that the SEC recognizes cryptocurrency as a commodity.
However, there may still be issues ahead for Consensys. The company received a Wells notice earlier, which is a document warning of potential legal action from the SEC. The government agency warned the company that its MetaMask portfolio, which allows staking of ether, may violate securities laws. It is possible that the matter will end up in court.
