SEC Drops its Investigation into Ethereum

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Consensys has announced that the US Securities and Exchange Commission has concluded their investigation into Ethereum 2.0, which is seen as a significant victory for the blockchain industry.

In a post on the X platform, Consensys stated that Ethereum has “survived” the SEC and will not face charges of securities transactions related to the sale of ETH tokens.

The SEC’s decision comes after Consensys sent a letter requesting confirmation that the approval of spot ETH exchange-traded funds in May would result in the closure of the investigation into Ethereum 2.0. Consensys also noted that this approval was based on the understanding that ETH tokens are considered commodities.

In April, Consensys had filed a lawsuit against the SEC in response to their classification of ether as a financial security.

The company argued that the SEC’s Director of the Division of Enforcement, Gurbir Grewal, had initiated an investigation on March 28, 2023, to examine individuals and entities involved in buying and selling ETH.