The United States Securities and Exchange Commission (SEC) has decided to end its investigation into whether Ether should be classified as a security.
Consensys, a prominent Ethereum developer, announced on June 19 that the SEC’s Enforcement Division has closed its investigation into Ethereum 2.0. This means that the SEC will not pursue charges claiming that Ether sales are securities transactions. Consensys celebrated this development as a significant victory for Ethereum developers, technology providers, and industry participants.
The decision by the SEC follows a letter sent by Consensys to the agency on June 7, inquiring about the status of the investigation into Ether (ETH). This inquiry was prompted by the SEC’s approval of spot Ether exchange-traded funds (ETFs) in May, which were based on the premise that ETH is a commodity.
Laura Brookover, senior counsel at Consensys, shared the SEC’s response letter confirming that the agency does not plan to take any enforcement action in this matter. The SEC did not provide any immediate comment on this decision.
Earlier this year, the SEC issued subpoenas to several companies as part of its efforts to determine whether ETH should be considered a security. Consensys also took legal action against the SEC in April after receiving a Wells notice regarding potential violations of securities laws related to its MetaMask crypto wallet. The lawsuit highlighted the belief of SEC Chair Gary Gensler and the agency that ETH was a security since early 2023. Consensys alleged that the SEC’s Division of Enforcement Director approved an investigation into Ether’s security status in March 2023.
Consensys mentioned in its recent statement that the lawsuit is still ongoing as they await further developments.
In a separate development, Anurag Arjun, a key figure in the crypto industry, emphasized that Polygon did not aim to surpass Ethereum but rather to offer unique solutions in the space.