Regulation
Ethereum Surpasses $3,500 as SEC Concludes Investigations
Ethereum’s value has risen above $3,500 following the conclusion of the United States Securities and Exchange Commission’s (SEC) protracted investigation.
Previously, there were looming doubts as to whether Ethereum could be classified as unregistered safety. This uncertainty has been a significant concern for investors, impacting the asset’s market performance. However, the closure of the investigation has now restored investor confidence, prompting a modest increase in Ethereum’s market value.
Ethereum marked safe by SEC
The SEC’s investigation focused on Ethereum Foundation and raised questions about whether Ethereum should be regulated as a security. This classification may have had a serious impact on the demand for digital assets.
In response, Consensys, a key entity within the Ethereum ecosystem, has filed a lawsuit on April 25, 2024. The lawsuit challenged the SEC’s jurisdiction, arguing that Ethereum qualifies as a commodity and therefore should not fall under the SEC’s stringent regulations.
To know more: Ethereum (ETH) Price Prediction 2024/2025/2030
Consensys’ legal challenge was a strategic move against perceived overregulation. The lawsuit sought judicial confirmation that Ethereum is not a security.
Support for Consensys’ position has grown, characterized by significant public and political support. This culminated in a formal appeal on June 7, urging the SEC to reconsider its position.
Subsequently, on June 18, the SEC’s Enforcement Division responded positively.
“Today, the SEC Enforcement Division responded by notifying us that it is closing its investigation into Ethereum 2.0 and will not take enforcement action against Consensys,” the company said announced.
Following this announcement, Ethereum saw a price increase, trading at $3,563. This response highlights the market’s sensitivity to regulatory changes, particularly regarding major cryptocurrencies such as Ethereum.
Ethereum (ETH) price action. Source: BeInCrypto
Despite this victory, Consensys is pushing for more definitive regulations that encourage rather than hinder innovation. The company advocates for regulatory clarity that accommodates the unique aspects of cryptocurrencies and decentralized platforms. This approach is essential as it aims to protect investors’ interests and promote technological progress without undue restrictions.
“The SEC is a securities regulator, not a software regulator. Gary Gensler and the SEC should stay in their lane as they have important work to do with real securities. They have been distracted by this truly illegal excursion into the crypto space,” a Consensys spokesperson told BeInCrypto.
To know more: Who is Gary Gensler? Everything to know about the SEC president
The broader debate regarding the classification of digital assets continues to be a contentious issue within regulatory circles. Although Bitcoin is generally accepted as a commodity, the SEC maintains that most other cryptocurrencies should be treated as unregistered securities under its supervision.
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