- The SEC has dropped its investigation of Ethereum.
- Howey was attacked by many in the community.
The U.S. Securities and Exchange Commission is reportedly ‘closing’ the investigation into Ethereum [ETH] Meta Mask is powered by ConsenSys 2.0.
Reacting to the update, ConsenSys stated it has ‘survived SEC‘and marked a major win for ETH devs.
‘Ethereum survives the SEC. Today, we are happy to announce that Ethereum developers and other industry participants have won a significant victory: Enforcement Division, SEC, has informed us of its decision to close the investigation.
Ethereum 2.0 is the post Merge era when the network went from PoW (proof-of-work) to PoS. Firm clarified that the new update would have an impact on ETH bought after the Merge.
“This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.”
SEC – Ethereum tussle, and community reactions
Consensys filed a lawsuit against the SEC in April for “unlawful power grab,” accusing the SEC of going after it and its developers and classifying ETH as ‘security.’
But since then, a lot has changed, including the easing of crypto’s war, and the approval for spot ETH-ETFs.
The SEC’s move to drop the probe was not a big surprise. SEC statement about the decision read,
“We do not intend to recommend an enforcement action by the Commission against your client, Consensys Software Inc., with respect to this investigation.”
Alexander Grieve, Paradigm Government Affairs officer, said that the SEC’s letter “unusual“ You can also find out more about the following: “pretty evasive” Regarding notification
However, this update brought the Howey-test debate back up. The SEC uses this test most often to determine if an investment is a securities.
Paul Grewal, Chief Legal Officer at Coinbase and a reaction to the SEC Ethereum update. commented,
“Good. It was a silly theory of liability, to begin with…How do you explain both this decision and the other projects maligned by the SEC’s broken Howey analysis?”
Fred Krueger was another analyst and investor in tech who called the Howey “a joke“ Some people suggested that the decision was a political one.
Price action of ETH
Apparently, this update appears to have changed a headwind that was previously experienced by major ETH holders into a tailwind.
After the whale update, it was only a matter of hours before a new one appeared. scooped The ETH was worth $19.7 Million. As of the time this article was published, ETH traded for $3.55K and had grown +3% within 24 hours.
Open Interest rates (OIs) were also up by 4%. This indicates a significant inflow of liquid into the derivatives markets and may give bulls an edge.
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Source: ambcrypto.com
