The US SEC has confirmed that it is dropping its investigation into Ethereum 2.0. This comes after Consensys sought confirmation from the agency via a letter sent earlier this month. The Commission notifying its actions marks a pivotal moment for Ether including developers, industry participants, and tech providers. The investigation will be dropped by the Enforcement Division of the SEC.
It was reportedly approved by Gurbir Grewal, the Director of ED, on March 28, 2023. The aim was to examine individuals and entities that were buying and selling ETH.
Also, dropping the investigation into Ethereum 2.0 translates to dropping allegations against ETH being security. Interestingly, the CFTC has already classified Ether as a commodity. This could be a backbone to the approval of the final applications for Spot Ether ETF. Consensys had sent a letter to confirm if the approval of previous applications for the ETF meant ETH was a commodity.
Consensys has maintained that while this is momentous, it does not fix the damage that the SEC has done to industry participants, tech providers, and developers, through its unlawful and aggressive enforcement measures.
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Moving forward, Consensys remains committed to seeking declarations about offering MetaMask Swaps and Staking. It is essentially looking for a confirmation clarifying that their usage does not violate securities laws. The macro belief is that such innovations and technologies are the backbone of future developments in the industry. The X thread has strengthened speculation about having Spot Ether ETF in the current year.
Sentiments are evident in the token value. ETH is up by 2.82% in the last 24 hours, listed at $3,542.28 at the press time. It is testing the resistance of $3,500 with the potential to dance within a limited range for the next 30 days. The surge may not be significant but the decline, if any, would be softer. Moreover, the surge in the token value comes to 13.82% in the last 30 days with a significant rise in the market cap by 2.90%.
Prevailing sentiments are bearish but they would transition to bullish eventually – given the volatility is 3.80% and the Fear & Greed Index has given 64 points to the token.
The community has responded to the announcement by Consensys. Members have expressed that they are now bullish about the future of Ether, potentially including the introduction of its ETF product before the year ends.
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Our fight continues, is how Consensys has concluded the thread. Its focus is now on gaining clarity about the user interface software. This will help understand if there is any breach or violation of securities laws. CFTC has categorized the token as a commodity. All sights are on the SEC and what it publicly says about Ether. An approval for its ETF would suffice more or less.
