ConsenSys, a blockchain software company, announced a major victory for Ethereum ETH/USD, 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.
See Also: Bitcoin, Ethereum, Dogecoin Go Sideways, But ‘Market Structure Back To Bullish,’ Says Trader
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.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
