The United States Securities and Exchange Commission (SEC) has been investigating Ethereum, the second-largest cryptocurrency by market cap, to determine whether it is a security. The SEC made key announcements about their research yesterday.
SEC Drops Investigation
On June 19, 2024, Consensys confirmed that the SEC has informed them it is ending its investigation into Ethereum 2.0. This development is a major victory for developers as well as technology providers and industry participants,
SEC Approves Stake-Free ETF Proposals
On June 12, 2024, the SEC approved three stake-free ETF proposals which made possible the listing of spot Ethereum exchange traded products. This decision was regarded as a major advance in crypto’s regulatory landscape.
Ethereum’s Status as a Security
The fact that SEC has closed its investigation into Ethereum 2.0 does not necessarily mean that it is no longer deemed a security. On the other hand, it does signal that the SEC has concluded its investigation. And that they will not take any enforcement action against Ethereum.
Implications for the Crypto Market
The Market price of Ethereum jumped above $3,500 after the SEC’s decision was made public. The News has also caused a buzz among investors and developers, who view it as a major advance for the industry.
Conclusion
The SEC’s investigation is a major advance in the regulatory landscape of the crypto market. The agency’s decision to close its investigation is a big one and has already led to a beneficial market impact. However, it is unclear at this point whether Ethereum will still be classified as a security in future or not. More changes are expected during the coming months.
