ETH rises 3% after the closing of the SEC investigation into Ethereum and Consensys – DiarioBitcoin
By Hannah Perez
The SEC sent a letter to Consensys saying that it had closed the investigation into Ethereum and ensuring that it would not take enforcement action against the company.
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- SEC closed its investigation into Ethereum 2.0, Consensys said
- The company received a letter from the US regulator announcing that it is dropping the case
- Regulators assured that they will not take coercive actions against Consensys
- ETH regained the USD $3,500 mark after the news
Ethereum (ETH) has recovered the USD $3,500 area amid a price increase of more than 3% after financial regulators in the United States assumed a change of position regarding that cryptocurrency.
The US Securities and Exchange Commission (SEC) has officially closed “your research on Ethereum 2.0″ which also involved the technology incubator company Blockchain, Consensysthat company reported in a blog post Tuesday.
Consensyswhich described the decision as a “great victory” for the industry, said the SEC clarified in a letter sent to its lawyers that it would not take any enforcement action against the company as a result of the closure of the investigation.
“Ethereum survives the SEC”, wrote Consensys in his publication in x. “This means that the SEC will not file charges alleging that ETH sales are securities transactions”.
SEC closes its investigation into ETH
The company behind the wallet MetaMask had filed a lawsuit in April against the SEC in response to a Wells Notice that suggested it may be violating federal securities laws and anticipated possible enforcement action from the regulator.
The move was based on the agency’s categorization of ETH as a financial security, as the SEC was apparently evaluating whether after the update The Merge, Ethereum could qualify as a value.
The lawsuit was intended to defend the ecosystem Ethereum and sought an injunction to stop the SEC’s investigation on the grounds that ETH is a commodity or raw material and, therefore, said agency lacked the jurisdiction to investigate, supervise or regulate it.
Consensys said that, after the approval of the exchange-traded funds (ETFs) of Ethereum spot by the SEC in May, had sent a letter to the regulator asking it to confirm that said approval was based on the categorization of ETH as a commodity rather than a security and that therefore the investigation did not proceed.
The letter does not appear to specifically mention blockchain Ethereumas noted CoinDeskwhich accessed the document, nor should it be interpreted to mean that there will never be coercive action, according to that news outlet.
Consensys calls for regulatory clarity
Despite the victory, the company emphasized that it still “There is more work to do to protect cryptocurrencies in the United States“.
The team of Consensys He argued that no company or individual should have to resort to costly litigation to obtain regulatory clarity, and urged that the SEC provide clear rules to the sector.
“It is imperative that the SEC abandon its unscrupulous and opaque regulation-by-enforcement campaign in favor of much-needed regulatory clarity for an industry that serves as the backbone of countless new technologies and innovations.“adds the blog post. “We hope that today’s event marks the beginning of a new path forward“.
ETH rebounded in price after the news amid a bearish trend in the rest of the crypto market. After trading as low as $3,380 on Tuesday, the second-largest cryptocurrency rebounded to sit at $3,530 at press time, a 3.7% gain in the last 24 hours.
Article by Hannah Estefanía Pérez / DailyBitcoin
Picture of Unsplash
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