SEC to End Investigation into Ethereum: Agreement
The United States Securities and Exchange Commission has dropped its investigation into the security of Ether (ETH).
“The SEC's enforcement division has informed us that it will close its investigation into Ethereum 2.0,” Ethereum developer Consensus said in a June 19 X post.
“This means that the SEC will not incur charges that ETH sales are securities transactions,” the organization said, hailing it as “a major win for Ethereum developers, technology providers, and industry participants.”
The SEC's decision comes after it sent a letter to the agency on June 7 about the regulator's approval of ETH exchange-traded funds (ETFs) in May. ETH is a commodity.”
Consensus senior counsel Laura Brookover shared the SEC's response letter to the firm, which says the agency “does not intend to recommend enforcement action.”
The SEC did not immediately respond to a request for comment.
In March, Fortune reported that the SEC had issued subpoenas to several companies related to attempts to designate EHTs as securities.
Related: SEC Chair Considers Ether ETF S-1 Approvals Sometime in Summer 2024
The settlement came shortly after the agency's announcement of Wells's filing with the SEC in April, which alleged that MetaMask crypto wallet may have violated security laws.
The SEC and its chairman, Gary Gensler, believe that ETH is a security at least as early as 2023. SEC Enforcement Division Chief Gurbir Grewal has ordered formal investigation into Ether's security situation on March 28, 2023.
In a recent post, he said the case is still ongoing.
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