Ether’s value surged past US$3,500 as the U.S. Securities and Exchange Commission (SEC) wrapped up its investigation on Ethereum.
The conclusion of the SEC’s investigation, which did not result in any charges related to Ethereum’s sales as securities, has been met with enthusiasm from investors and the Ethereum community.
This development comes after Consensys, an Ethereum developer, contested the SEC’s regulatory stance, advocating for Ethereum’s classification as a commodity.
Consensys’ legal challenge, initiated in April 2024, sought to limit the SEC’s regulatory reach over Ethereum and to obtain a judicial declaration affirming its commodity status.
The culmination of this legal battle, combined with public and political support, prompted a favorable outcome from the SEC’s Enforcement Division on June 18.
The resolution of the SEC’s scrutiny lifts a major uncertainty that had been casting a shadow over Ethereum, potentially impacting its classification and market demand.
The announcement of the investigation’s end was met with an immediate response in the market, with Ethereum’s trading price climbing to $3,586, according to CoinGecko.
The SEC approved a series of spot Ether exchange-traded funds (ETFs) last month, paving the way for their trading on the stock market.
Announced on May 23, this decision came amidst legislative efforts to define the regulatory roles of the SEC and the Commodity Futures Trading Commission in the crypto industry, with the Financial Innovation and Technology for the 21st Century Act still pending in the Senate.