- The SEC has closed its investigation into Ethereum 2.0, designating it as a commodity
- Consensys announced that decision following its letter to the agency earlier this month
- The company will persist with its lawsuit seeking clarification on whether ETH staking rewards are considered securities
The US Securities and Exchange Commission (SEC) has closed its investigation into Ethereum 2.0, paving the way for the ETF coming this summer. Crypto company Consensys revealed the news in an X thread, noting that the decision means that “the SEC will not bring charges alleging that sales of ETH are securities transactions.” It added that the battle is not over, however, referencing a lawsuit it filed against the SEC in April, seeking clarification that ETH rewards from staking do not count as securities.
Ethereum “Survives the SEC”
Consensys revealed that it wrote to the SEC on June 7 following the news that the awarding of an Ethereum ETF was in the agency’s plans, asking if the inherent classification of ETH as a commodity meant that it would end its investigation, which the agency confirmed:
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
Consensys noted that the closing of the Ethereum investigation is “momentous” but it doesn’t make up for the “many blockchain developers, technology providers, and industry participants who have suffered under SEC’s unlawful and aggressive crypto enforcement regime.”
Metamask to Persevere With Lawsuit
The company added that it still intends to pursue its lawsuit, filed in April, which seeks a declaration that its MetaMask Swaps and Staking offering doesn’t violate the securities laws. It nodded, tellingly, “ It should not take a lawsuit to provide the much-needed regulatory clarity to allow an industry that serves as the backbone to countless new technologies and innovations to thrive – but here we are.”
ETH bounced around $200 on the news following a two-week downtrend.
