Consensys: SEC has ended its Ethereum investigation, no longer accusing ETH of being a security

ETH price is increasing slightly after Consensys confirmed that the US Securities and Exchange Commission has ended its investigation into Ethereum.

On the morning of June 19, the blockchain infrastructure company behind the MetaMask cryptocurrency wallet, Consensys, issued a shocking statement, confirming that the US Securities Commission (SEC) has ended its investigation into the crypto project. The second largest market is Ethereum (ETH).

According to Consensys' statement, the SEC will not continue to pursue allegations that ETH sales traded securities.

Consensys further revealed that after the SEC's preliminary approval of the Ethereum spot ETF proposals in mid-May, the company sent a letter to the securities commission to confirm the information that it would stop the investigation targeting Ethereum.

Consensys affirms that this is an important victory for the user community, developers and infrastructure providers, but also for those who have been impacted by the SEC's regulatory actions during the period. last time.

However, Consensys said it will continue to pursue the current lawsuit with the US Securities Commission, asking the agency to refute allegations that the MetaMask Swaps service and staking activities are securities in nature.

As reported by Coin68, Consensys at the end of April 2024 filed a lawsuit against the SEC after receiving a warning letter from the commission. In the lawsuit, the company made many unexpected revelations such as that the SEC has been investigating Ethereum since March 2023 and maintains that this currency is a security, as well as wanting to fine MetaMask wallet for providing related services. with securities. During this time, there was also a lot of information that the SEC was stepping up its investigation of Ethereum and major projects in the ecosystem such as Uniswap.

However, in May, the US Securities Commission decided to "turn around" 180 degrees in just a few days, with many commenting that there may have been an impact from President Biden's administration.

ETH price is rising nearly 3% after Consensys confirmed the SEC ended its investigation into charges that Ethereum is a security, regaining some of the ground lost during the correction in the crypto market over the past 24 hours. The above news is also being warmly received by the crypto investment community on social networks.

This is considered the third notable legal defeat of the SEC against the cryptocurrency industry, after US courts rejected claims that Ripple's XRP coin was a security and decided to reject Grayscale's Bitcoin ETF proposal. .

The SEC at the time of writing has not yet issued an official statement on the incident. Chairman of the US Securities Commission is Mr. Gary Gensler, the main leader in the crackdown on cryptocurrencies over the past 2 years and has continuously affirmed that coins using Proof-of-Stake mechanism such as ETH are securities. , repeatedly refused to comment on the true nature of ETH even though his agency had approved an Ethereum ETF, saying only that these investment products would open for trading within the next three months.