SEC Says Ethereum Is Not a Security, Consensys Confirms

The United States Securities and Exchange Commission (SEC) has closed its investigation into whether Ethereum (ETH) should be classified as a security.

Ethereum developer Consensys announced on June 19 via an X post that the SEC’s Enforcement division had informed them of the conclusion of the investigation into Ethereum 2.0. The message reads:

Today, we are pleased to announce a major victory for Ethereum developers, technology providers, and industry participants: the SEC’s Enforcement Division informed us that it is closing its investigation into Ethereum 2.0.

This means that the SEC will not bring charges alleging that ETH sales are securities transactions.

A sigh of relief

Consensys previously sent a letter to the SEC on June 7, requesting clarification on the status of the investigation, citing agency approval stain Ethereum Exchange Traded Funds (ETFs) in May. Such approval allegedly implied that ETH was considered a commodity.

Laura Brookover, senior counsel at Consensys, shared the SEC response letter, confirming that the agency did not intend to recommend enforcement action. The SEC has yet to provide an official comment on the matter.

In March, reports revealed that the SEC had subpoenaed several companies in an attempt to label ETH as security. Always, Consensys Lawsuit Against the SEC its opinion suggesting that the MetaMask crypto wallet may have violated securities laws is still pending.

The lawsuit claimed that the SEC and its chairman, Gary Gensler, believed ETH was a security. since the beginning of 2023with SEC Enforcement Division Director Gurbir Grewal approving a formal order of investigation on March 28, 2023.

The resolution of the SEC’s investigation into the security state of Ethereum should bring clarity and relief to the Ethereum community and society at large. cryptocurrency industry.

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