The SEC Ends Investigation Into Ethereum: What This Means for the Cryptocurrency Market
The U.S. Securities and Exchange Commission (SEC) is
ending its investigation into whether
Ethereum qualifies as a security. This news has sent shockwaves through the cryptocurrency community and has significant implications for the future of Ethereum.
SEC Ends Ethereum Investigation
Consensys, a major Ethereum developer, recently announced that the SEC is concluding its investigation into the cryptocurrency. This decision by the SEC signifies a major victory for Ethereum developers, technology providers, and industry stakeholders. The SEC's Enforcement Division notified Consensys of the closure of its Ethereum 2.0 investigation, indicating that ETH sales will not be classified as securities transactions.
The SEC decided to end its investigation after receiving a letter from Consensys on June 7. The letter questioned the need for an investigation into Ether, especially considering the SEC had approved spot Ether ETFs in May, implying that ETH is considered a commodity.
Consensys senior counsel Laura Brookover shared the SEC's response, stating that the agency does not plan to recommend any enforcement action. This news comes after reports in March that the SEC had issued subpoenas to various companies in an effort to classify ETH as a security.
In April, Consensys took legal action against the SEC after receiving a Wells notice. The lawsuit argued that the SEC and its Chair, Gary Gensler, had considered ETH to be a security since early 2023. However, with the recent announcement from the SEC, it seems that Ethereum will not be classified as a security.
How has the Ethereum Price Moved Recently?
Currently, Ethereum is priced at $3,543.27, with a 24-hour trading volume of $19.40 billion and a market cap of $425.68 billion, holding 17.88% of the market share. Over the past 24 hours, ETH's price has risen by 3.19%.
Ethereum reached its peak price of $4,867.17 on November 10, 2021, with its lowest price being $0.420897 on October 21, 2015. Since then, the lowest price it reached was $897.01, and the highest price since then was $4,094.18. Market sentiment for Ethereum is currently neutral, with a Fear & Greed Index rating of 64 (Greed).
With 120.14 million ETH in circulation and a yearly supply inflation rate of -0.24%, indicating that 292,161 ETH were removed from circulation over the past year, Ethereum remains a strong player in the cryptocurrency market.
This news from the SEC regarding Ethereum's classification has brought relief to many in the crypto community and could potentially impact the wider cryptocurrency market in the coming months. As always, investors should stay informed and monitor the situation closely to make informed decisions.
