Crypto News- SEC Ends Ethereum Investigation
Crypto News– Late Tuesday, leading Ethereum developer ConsenSys announced that the U.S. Securities and Exchange Commission (SEC) is closing its investigation into the cryptocurrency. Following the SEC’s recent approval of Ethereum spot ETFs, ConsenSys disclosed that it had sent a letter to the SEC, highlighting that these funds were based on the premise that ETH is considered a commodity. They sought clarification on how this decision would impact the SEC’s ongoing investigation.
Laura Brookover, an attorney at ConsenSys, separately shared the SEC’s notification letter and the company’s comprehensive statement regarding the SEC’s decision on Twitter.
However, the SEC’s communication included standard language clarifying that the notice of concluding its investigation must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result from the staff’s investigation.
Things have changed remarkably fast since we filed our lawsuit against the SEC in late April, culminating in today’s development, After more than a year, the Ethereum investigation is finally over with no charges against anyone.
Laura Brookover
In April, ConsenSys took a proactive stance by filing a lawsuit against the SEC, alleging that the regulator was attempting to seize control over the future of cryptocurrency and planning to classify Ethereum as a security. According to the unredacted lawsuit, ConsenSys claimed that the SEC had internally decided on Ethereum’s status a year prior.
The lawsuit was prompted by a Wells Notice, a preliminary warning of potential regulatory action, which ConsenSys disclosed it had received concerning its popular MetaMask wallet.
On Tuesday, ConsenSys emphasized its commitment to continue pursuing its case against the SEC.
FAQs
What does SEC Closes Ethereum Investigation mean?
This headline indicates that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Ethereum, the second-largest cryptocurrency by market capitalization.
Why was the SEC investigating Ethereum?
The SEC was investigating Ethereum to determine whether it should be classified as a security under U.S. law. This classification could potentially subject Ethereum to stricter regulatory oversight.
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