ETH-USD News: Consensys confirms major victory for Ethereum with the SEC

Ethereum bulls, rejoice: Consensys is bringing some good cryptocurrency news – and it’s from the SEC.

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A few hours ago, software company Consensys told X (formerly Twitter) that the US regulator, the Securities and Exchange Commission, had just informed Consensys that it was concluding and closing the investigation of long-standing carried out by the SEC on ETH.

A major victory for ETH

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Oddly titled “Ethereum Survives SEC,” Consensys described it as a “major victory” for Ethereum developers, technology providers and industry participants, stating that:

The SEC’s Enforcement Division has informed us that it is closing its investigation into Ethereum 2.0. This means that the SEC will not bring charges alleging that ETH sales are securities transactions.

This is important for the crypto industry, not least because, under current US laws governing cryptos such as Ethereum, this means they will not be recognized as “securities transactions” (and enforced and governed as such) by the SEC.

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The law around Ethereum, explained

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Lowell D. Ness of the international law firm Perkins Coie explains why this is such an important distinction:

“The Ripple order provides some interesting insight into the types of transactions that, at least according to the court, deserve to be treated as securities transactions. When the token is sold to traditional investor types using traditional investment processes and documents and the investor’s thesis is clearly to seek appreciation in the value of the token, then it is evident that this type of primary token sale should be treated as a securities transaction. But when the token trades on highly liquid secondary markets, the regulatory need to regulate exchanges like securities markets seems overstated.

Essentially, this is when a major cryptocurrency, with a sufficiently active market, is considered “overregulated” by being treated as a security by the SEC.

“Part of the reason is that clearing and settling cryptocurrencies does not have the same complications and pitfalls as traditional securities. Many of the same anti-fraud rules should apply to front-end and other trading abuses, but the requirement for every participant to be a licensed broker-dealer is a bit of a stretch,” says Ness.

In essence, this means essential peace of mind for the Ethereum community, particularly in relation to its continued work developing Ethereum 2.0, and could be seen as a sign of approval, albeit a more modest one, of the part of the regulator.

ETH-USD price today

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Unsurprisingly, the news has had a very positive effect on the price of Ethereum since its breakout.

The ETH-USD price is up $72, or more than 2%, so far as this article went to press.

In total, ETH-USD is up 51% year-to-date, an increase of over $1,200 since January 1, 2024.

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