[NEWS] SEC ends Ethereum investigation; determines it does not qualify as a security

It has been revealed that the SEC (Securities and Exchange Commission) will not recognize Ethereum (ETH) as a security. This was revealed by Consensys, a US blockchain company involved in Ethereum-related development, on the 19th.

According to an announcement by Consensys, the SEC has notified them that it will end its investigation into Ethereum 2.0, which has transitioned the consensus algorithm from PoW (Proof of Work) to PoS (Proof of Stake).

In response, Consensys stated that it recognizes that "this indicates that the SEC will not prosecute the sale of Ethereum as a securities transaction." It also stated that "we are pleased to announce a major victory for Ethereum developers, technology providers, and industry participants."

The SEC approved an investigation order into Ethereum in March last year. It then formally issued the investigation order in April.

In April of this year, Consensys received a "Wells Notice," which notifies companies and individuals in advance that the SEC will take legal action against them. The SEC claimed that ConsenSys violated the Securities and Exchange Act.

ConsenSys called the SEC's actions an "illegal power grab" and filed a lawsuit in the same month. The SEC's investigation into Ethereum was also revealed in court documents filed by ConsenSys.

Is Ethereum Spot ETF Trading Coming Soon?

A spot ETF for Ethereum, which has long been attracting attention, was partially approved last month.

To officially start trading, approval of the S-1 (registration statement) is required, but SEC Chairman Gary Gensler said on the 13th that "final approval will be obtained by the end of this summer."

In addition, according to Bloomberg Intelligence ETF analyst Eric Balchunas, the SEC's requirements for ETF issuers are "not stringent," and trading could begin as early as the 2nd of next month.

Reference: Announcement
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