In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has decided to close its investigation into whether Ether (ETH), the native token of the Ethereum network, should be classified as a security.
The Ethereum development company ConsenSys announced that the SEC’s Enforcement Division has notified them of this decision, effectively ruling out potential charges regarding the sale of ETH as securities transactions. This move is being celebrated as a major victory for Ethereum developers, service providers, and industry participants.
While the SEC has remained tight-lipped about the existence of any investigations, ConsenSys shared the regulator’s response letter stating that it does not intend to recommend enforcement action. This decision comes after the SEC’s recent approval of spot Ether exchange-traded funds (ETFs), which implied treating ETH as a commodity.
However, the legal battle is still ongoing. ConsenSys is still pursuing a lawsuit against the SEC, alleging that the agency previously considered ETH security. The lawsuit claims that the SEC believed this since early 2023 and had initiated a formal investigation into Ether’s status in March 2023.
As the regulatory landscape around cryptocurrencies continues to evolve, this development provides much-needed clarity and assurance to the Ethereum ecosystem and the broader crypto industry. It is a positive step towards fostering innovation and growth in the sector.
