ConsenSys, the developer of MetaMask, has announced that the United States SEC has stopped their investigation into Ethereum 2.0 (ETH 2.0).
It could be political, or finally, regulators in the United States agree that crypto deserves a second look and not outright dismissal.
After all, they dismissed Bitcoin for over ten years before green-lighting the first spot ETF in January this year.
Now, eyes are on the second most valuable coin whose futures are trading at CME.
As the community waits for the United States SEC to approve all S-1 registration forms, paving the way spot Ethereum ETF trading, something big happened today.
United States SEC Stops Ethereum 2.0 Investigation: ConsenSys
ConsenSys, the development firm behind the popular MetaMask non-custodial wallet, has scored a major win against the United States SEC.
Taking to X, the MetaMask developer said the agency is closing its investigation into Ethereum 2.0 and will not pursue legal action against the sale of ETH as securities.
In their lawsuit versus the Commission in late April, ConsenSys maintained that ETH is a commodity, similar to how the Commodity Futures Trading Commission (CFTC) classifies it.
In addition, the development firm argued that applications built on Ethereum, like MetaMask, shouldn’t be considered securities brokers and, therefore, shouldn’t fall under the agency’s purview.
While this decision represents a major win for Ethereum developers and the broader crypto industry, ConsenSys emphasizes it’s not a complete or a “cure-all” solution.
Instead, ConsenSys acknowledges that many in the industry continue to face issues with the commission’s “unlawful and aggressive crypto enforcement regime.”
Although the United States SEC is now convinced that ETH is not a security, they didn’t clarify the regulatory status of MetaMask‘s swap and staking features.
Even so, their decision to close the Ethereum 2.0 investigation means these functionalities are not under scrutiny.
DISCOVER: The Best Way to Buy Ethereum Spot in June 2024 – Beginner’s Guide
ETH Prices Recover Ahead Of Spot ETF Trading
Following this news, ETH prices reversed yesterday’s losses, breaking above $3,500. Nonetheless, the coin remains under intense selling pressure, failing to break above $3,700.
(ETHUSDT)
The broader Ethereum community looks forward to the eventual trading of spot Ethereum ETFs after the approval of 19b-4 forms.
According to experts, these products could begin trading by early July.
The approval of this product is a move in the right direction for the United States. In their lawsuit, ConsenSys argued that the SEC’s actions would bar Americans from reaping the benefits of Ethereum and similar blockchain technology.
The development firm feared that this would, in turn, stifle innovation in multiple areas, including decentralized finance (DeFi). With the agency as a stumbling block, other countries will take over, potentially disadvantaging the United States.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
