Ethereum has scored a huge win with its Exchange Traded Funds (ETF) decision right around the corner. The win in question has seen the US Securities and Exchange Commission (SEC) close its investigation into Ethereum 2.0.
The SEC confirmed that sales of ETH are not considered securities transactions.
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Ethereum is second only to Bitcoin in both notability and market cap in the crypto industry. It has finally put this looming issue to bed after the Enforcement Division of the SEC announced the closure of its investigation into Ethereum 2.0.
The news was first reported by blockchain firm Consensys in a post on X.
ETHEREUM SURVIVES THE SEC.
Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.
This means that the SEC…
— Consensys (@Consensys) June 19, 2024
“Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0” Consensys said in its post, before adding “this means that the SEC will not bring charges alleging that sales of ETH are securities transactions.”
Consensys had previously written a letter on 7 June 2024, addressed to the SEC seeking clarification on the case. In the letter, it requested confirmation that the recent approval of spot ETFs, assuming ETH to be a commodity, would result in the closure of the Ethereum 2.0 investigation.
Even with this positive outcome, Consensys will be continuing its battle with the SEC. It is now seeking confirmation from the SEC that offering user interface software such as MetaMask Swaps and Staking does not violate securities laws.
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The XRP Community Hopeful In Its Own SEC Case After ETH Decision
The decision from the SEC to close its investigation into Ethereum is a huge boost for the overall cryptocurrency industry and will now give hope to Ripple (XRP) in its ongoing saga with the SEC. Ripple has been locked in its battle with the SEC for many years now and XRP investors might be hoping for a positive outcome following the decision in the Ethereum case.
There is hope within the XRP community that a favourable outcome is imminent in its own case. Although, many have been vocal in the SEC’s favourable treatment toward Ethereum compared to that of Ripple. Pro-XRP lawyer, Bill Morgan spoke on the issue immediately after the Consensys announcement.
Ethereum’s second free pass from the SEC almost exactly 6 years after the Hinman free speech.
Ethereum’s and Ripple’s different treatment will forever show how arbitrary the SEC has been in crypto. https://t.co/Coxf6czO9r pic.twitter.com/WNcacVYhNE
— bill morgan (@Belisarius2020) June 19, 2024
It was found that Ripple’s institutional sales of XRP broke the law and as a result are awaiting the court’s decision on an appropriate penalty to be levied against Ripple. Positively for Ripple, a New York federal court declared in July 2023 that XRP is not a security.
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Investors are speculating that once a penalty has been declared for Ripple’s institutional sales, a fine can be paid and XRP can move forward after a 4-year long battle with the SEC.
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.
