Crypto News- SEC to End Ethereum Investigation

Crypto News- SEC to End Ethereum Investigation into Whether Ether is a Security

Crypto News– The United States Securities and Exchange Commission (SEC) is ending its investigation into whether Ether is a security.

In a June 19 post on X, Ethereum developer Consensys announced, The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0‘

This decision means the SEC will not pursue charges claiming that sales of ETH are securities transactions, a development that Consensys celebrated as a ‘major win for Ethereum developers, technology providers, and industry participants.’

Consensys stated that the SEC’s decision followed a letter they sent to the agency on June 7, requesting an end to the investigation into Ether (ETH). This request came after the SEC approved spot Ether exchange-traded funds (ETFs) in May, which Consensys argued are ‘premised on ETH being a commodity.’

SEC Plans to Conclude Ethereum Inquiry

Consensys senior counsel Laura Brookover shared the SEC’s response letter, which stated that the agency does not ‘intend to recommend an enforcement action.’

An SEC spokesperson told Cointelegraph that the agency ‘does not comment on the existence or nonexistence of a possible investigation.’

In March, Fortune reported that the SEC issued subpoenas to multiple companies in an attempt to classify ETH as a security.

Consensys sued the SEC in April shortly after receiving a Wells notice from the agency, which warned that its MetaMask crypto wallet might have violated securities laws.

The lawsuit asserted that the SEC and its Chair, Gary Gensler, had considered ETH a security since at least early 2023. Consensys also claimed that SEC Division of Enforcement Director Gurbir Grewal approved a formal order of investigation into Ether’s status as a security on March 28, 2023.

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