Ethereum, despite the general market bleed out, gained nearly 4% as the United States Securities and Exchange Commission (SEC) closed its investigation on the crypto asset without filing charges.
The news was broken by Consensys via a tweet on X where they announced the closure of the “ Ethereum 2.0 “ investigation by the SEC without the latter filling any charges whatsoever.
“ETHEREUM SURVIVES THE SEC. Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0. This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.” Consensys tweeted.
In April Consensys reacted to the Ethereum 2.0 investigation by the SEC with a lawsuit for the regulatory body arguing that the SEC is trying to regulate Ethereum as a security even when it is not.
The back and forth between Consensys and the US SEC has ended on a positive note for the Ethereum project as the regulatory body recently closed its investigation on the asset without filing any charges.
At the time of writing this report, Ethereum’s price is slightly above $3500 and recorded a 3.8% gain in the last 24 hours according to Coingecko.
Aside from the 3.8% gain by Ethereum, its spot trading volume also rose to $21 billion second only to that of May 24 which was the day the United States Securities and Commission approved Ethereum ETFs for trading.
Ethereum’s boost is happening despite the bloodbath in the crypto market of recent affecting bitcoin and all other altcoins.
Ethereum Related projects also gain
Ethereum boost in price due to the positive SEC news did not affect the asset only. It also affected other crypto projects tied to Ethereum.
Crypto projects like liquid restaking protocol Lido DAO’s governance token (LDO), decentralized domain name service Ethereum Name Service (ENS), and the fourth largest Ethereum DeFi protocol Maker (MKR) all recorded double digits gains in the past 24 hours.
The SEC has often entered a spat with crypto projects over the issue of which crypto assets could be regarded as a security or not. This is because assets that are securities are required to be registered with the SEC.
Ethereum came under the radar of the SEC after it became a proof of stake network which according to the SEC is one of the attributes of a security.
The back and forth between the SEC and Consensys as regards the Ethereum 2.0 investigation ended on a positive note for Ethereum as the SEC dropped the investigation without filing a charge.
What to know
- Ethereum is the second-largest cryptocurrency by price and market capitalization. It is also the primary altcoin.
- The US Securities and Exchange Commission (SEC) oversees securities exchanges, securities brokers and dealers, investment advisors, and mutual funds to promote fair dealing, the disclosure of important market information, and to prevent fraud.
