The U.S. Securities and Exchange Commission (SEC) has determined that Ethereum (ETH) does not qualify as a security, according to a recent report from ConsenSys.
This landmark decision, which concludes the SEC’s investigation into Ethereum 2.0, signifies that the sale of ETH will not be treated as a securities transaction.
This development is expected to bring greater stability and confidence to the U.S. cryptocurrency market, as businesses can now handle Ethereum without the fear of regulatory repercussions.
SEC’s Decision on ETH Sales
The U.S. Securities and Exchange Commission (SEC) has determined that Ethereum (ETH) does not qualify as a security, according to a report from ConsenSys, a key player in Ethereum’s technological development.
The report reveals that ConsenSys was notified by the SEC’s enforcement division regarding the conclusion of the Ethereum 2.0 investigation.
This decision implies that the SEC will not pursue charges against the sale of ETH as a securities transaction.
The Importance of Not Being Classified as a Security
The SEC has previously classified various cryptocurrencies as securities, leading to lawsuits against exchanges dealing with those cryptocurrencies for violating U.S. securities laws.
Cryptocurrencies deemed securities often face delisting from exchanges, making the SEC’s classification a critical issue.
The official declaration that Ethereum (ETH) is not a security allows U.S. crypto-related companies to handle Ethereum with greater confidence, marking a significant development for both Ethereum and the broader cryptocurrency industry.
This decision follows a letter from ConsenSys to the SEC on June 7, 2024, inquiring whether the approval of the Ethereum ETF in May, which considered ETH as a commodity, signified the end of the SEC’s Ethereum 2.0 investigation.
While ConsenSys acknowledges that concluding the investigation is a major step forward, it emphasizes that this does not resolve all issues stemming from the SEC’s allegedly unlawful and aggressive crypto regulations.
ConsenSys also seeks a legal declaration that offerings such as MetaMask Swaps and staking services do not violate securities laws.
>> Click here for the latest news related to Ethereum
-
US SEC Chairman Comments on Approval Timing for Ethereum Spot ETF
SEC Chairman Gary Gensler expects the Ethereum spot ETF to be approved by summer 2024. Read more about the expected approval timeline and market predictions.
続きを見る