Key Points
- The US Securities and Exchange Commission (SEC) has ended its investigation into Ethereum 2.0.
- Following the closure of the investigation, Ether’s price increased by 3.3%.
The Enforcement Division of the United States Securities and Exchange Commission (SEC) has informed Consensys Inc., a software development firm dedicated to the Ether network, about the closure of its investigation into Ethereum 2.0.
Despite disagreements on legal conclusions, the SEC has decided not to proceed with enforcement action.
A Major Milestone for Ethereum
This development is a significant step forward for the global web3 space. With the SEC no longer asserting that initial ETH sales violated securities laws, the Ethereum ecosystem can now progress.
The closure of the investigation is noteworthy, but it doesn’t solve all problems for blockchain developers, tech providers, and industry participants who have been affected by the SEC’s stringent crypto enforcement regime, as stated by Consensys.
The legal team at Consensys is still advocating for regulatory clarity on MetaMask Swaps and Staking, which the SEC claims have violated securities laws.
Anticipated Spot Ether ETF Listing
Following the previous Ethereum investigation, the SEC approved all 19b-4 filings, but the final approval of the S-1 is still pending.
With the closure of the Ethereum investigations, the listing and trading of spot Ether ETFs are expected to occur soon. Furthermore, Ethereum is now viewed as a commodity, akin to Bitcoin, gold, and crude oil.
The Ethereum network continues to lead in the web3 and smart contract space, with a total value of over $62 billion locked and a stablecoins market cap exceeding $79 billion.
Due to its compatibility with other layer-one blockchains through its EVM, the Ethereum network has grown into a robust ecosystem.
With the approval of spot Ether ETF in Hong Kong and the United States, Ethereum’s price is well-positioned to ignite substantial growth in the altcoin industry.
It is expected that the SEC will follow a similar course with other altcoins, particularly those that have achieved substantial decentralization, such as Cardano (ADA).
From a technical perspective, Ethereum’s price could rally towards its all-time high as the supply on exchanges dips to multi-year lows. The latest crypto oracles indicate that ETH price against the US dollar has gained 3 percent in the past 24 hours, trading around $3,542 during the European session on Wednesday.
