By
Kseniia Klichova
June 26th, 2024
The US SEC has toned down its Ethereum regulatory crackdown ahead of the November elections that have significantly focused on crypto voters.
The United States Securities and Exchange Commission (SEC) through its Enforcement Division has notified Consensys Inc., a software development company focused on the welfare of the Ether network, of the closure of its investigation into Ethereum 2.0.
In a letter dated June 18, the US SEC noted that it will not continue with an enforcement action, despite not agreeing with the legal conclusion:
“We are providing this notice under the guidelines set out in the final paragraph of Securities Act Release No 5310, which states in part that the notice must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result from the staff’s investigation.”
Big Win for Ethereum Developers
The move by the US SEC to close its Ethereum (ETH price data) investigation is a major milestone for the web3 space globally. According to Consensys in an X post, the Ethereum ecosystem can now move forward without the US SEC alleging that initial ETH sales violated securities laws.
“The closing of the Ethereum investigation is momentous, but it’s not a cure-all for the many blockchain developers, technology providers, and industry participants who have suffered under SEC’s unlawful and aggressive crypto enforcement regime,” Consensys noted.
Meanwhile, the Consensys legal team continues to fight for regulatory clarity on MetaMask Swaps and Staking, which the agency highlighted that they have violated securities laws.
Spot Ether ETF Listing Imminent
As Coinspeaker previously reported, the US SEC approved all the 19b-4 filings but the final approval of the S-1 remains pending following the prior Ethereum investigation.
With the Ethereum investigations closed, the listing and trading on spot Ether ETFs is expected to happen anytime. Furthermore, Ethereum is now considered a commodity similar to Bitcoin, gold, and crude oil.
🚨BREAKING: The @SECGov has informed @Consensys that it’s closing its investigation into $ETH’s status and transactions as a possible security. 👇🏼 https://t.co/MJnc1EnBSD
— Eleanor Terrett (@EleanorTerrett) June 19, 2024
Market Impact and ETh Price Expectations
The Ethereum network remains the undisputed leader in the web3 and smart contract space with more than $62 billion in total value locked and over $79 billion in stablecoins market cap.
The Ethereum network has grown into a robust ecosystem due to its compatibility with other layer-one blockchains through its EVM.
With the approval of spot Ether ETF in Hong Kong and the United States, Ethereum’s price is well positioned to kickstart the much anticipated parabolic growth in the altcoin industry.
Moreover, the US SEC is likely to follow the same path in other altcoins, especially those that have achieved significant decentralization led by Cardano (ADA).
From a technical standpoint, Ethereum’s price could easily rally toward its all-time high as the exchanges’ supply dips to multi-year lows. According to the latest crypto oracles, ETH price against the US dollar gained 3 percent in the past 24 hours to trade around $3,542 on Wednesday during the European session.