SEC Rules Ethereum is not a security, Consensys confirms

The United States Securities and Exchange Commission (SEC) has closed its investigation into whether Ethereum (ETH) should be classified as a security.

Ethereum developer Consensys announced on June 19th through an X post that the SEC Enforcement Division had informed them of the conclusion of the investigation into Ethereum 2.0. The post reads:

Today we are pleased to announce a major victory for Ethereum developers, technology providers, and industry participants: the SEC’s Enforcement Division has notified us that it is closing its investigation into Ethereum 2.0.

This means that the SEC will not charge that ETH sales are securities transactions.

A sigh of relief

Consensys had previously sent a letter to the SEC on June 7, seeking clarification on the status of the investigation, cite agency approval of place Ethereum Exchange Traded Funds (ETFs) in May. This approval supposedly implied that ETH was considered a commodity.

Laura Brookover, senior consultant at Consensys, shared the SEC’s response letter, confirming that the agency did not intend to recommend enforcement action. The SEC has not yet provided an official comment on the matter.

Reports surfaced in March that the SEC had issued subpoenas to several companies in an attempt to label ETH as a security. Still, Consensys’ lawsuit against the SEC its notification suggesting that the MetaMask crypto wallet may have violated securities laws is still pending.

The lawsuit alleged that the SEC and its chairman, Gary Gensler, believed that ETH was a security from the beginning of 2023with SEC Enforcement Division Director Gurbir Grewal approving a formal order of investigation on March 28, 2023.

The resolution of the SEC’s investigation into Ethereum’s security posture is expected to provide clarity and relief to the Ethereum community and the rest of the world. cryptocurrency sector.

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