Ethereum fans can now breathe a sigh of relief as the US Securities and Exchange Commission (SEC) has officially closed its investigation into the blockchain’s ecosystem. The news was shared by Ethereum development studio Consensys, who announced that the SEC will not be bringing charges alleging that sales of ETH are securities transactions.
Rumors of an SEC probe into Ethereum and related entities surfaced in March, with reports stating that the agency was looking into potential securities violations by three unnamed companies. Consensys later filed a lawsuit against the SEC, claiming regulatory overreach and Chairman Gary Gensler’s attempt to control the crypto space.
Despite initial concerns, the SEC’s investigation into Ethereum 2.0 has been concluded, providing a significant win for Ethereum developers and industry participants. This decision follows the approval of spot ether ETFs last month, easing one of the primary existential threats to the crypto industry.
Former SEC Chair Jay Clayton had previously supported the idea that ether was not a security in 2019, citing the lack of central control over the cryptocurrency. However, Gensler’s views on the matter have been less clear, leading to uncertainty within the crypto community.
In a letter to Consensys, the SEC stated that they do not intend to recommend any enforcement action against the company in relation to the Ethereum 2.0 investigation. While this is positive news for Consensys, other legal threats still remain in the crypto space.
Overall, the closure of the SEC investigation into Ethereum is a positive development for the industry, although challenges and uncertainties persist in the regulatory landscape.