Ethereum Surpasses $3,500 After SEC Investigation Ends

Ethereum’s value has surged above $3,500 following the conclusion of a protracted investigation by the U.S. Securities and Exchange Commission (SEC).

Previously, there were doubts about whether Ethereum would potentially be classified as an unregistered security. This uncertainty was a serious problem for investors and affected the market performance of the assets. However, the closure of the investigation has now restored investor confidence, causing a moderate increase in Ethereum’s market value.

Ethereum marked as safe by SEC

The SEC’s investigation focused on the Ethereum Foundation and raised questions about whether Ethereum should be regulated as a security. This classification could have a serious impact on demand for the digital asset.

In response, Consensys, a key entity in the Ethereum ecosystem, initiated a lawsuit on April 25, 2024. The lawsuit challenged the SEC’s jurisdiction, arguing that Ethereum qualifies as a commodity and therefore should not be subject to the SEC’s stringent regulations.

Read more: Ethereum (ETH) Price Forecast for 2024/2025/2030

The legal challenge filed by Consensys was a strategic move against perceived excessive regulatory pressure. The lawsuit sought judicial confirmation that Ethereum is not a security.

Support for Consensys’ position increased, with significant public and political support. This culminated in a formal appeal filed on June 7, urging the SEC to reconsider its position.

Then, on June 18, the SEC’s Enforcement Division responded positively.

“Today, the SEC Enforcement Division responded by notifying us that it is closing its investigation into Ethereum 2.0 and will not pursue enforcement actions against Consensys,” the company announced.

Following this announcement, Ethereum’s price surged, reaching $3,563. This response highlights the market’s sensitivity to regulatory news, especially regarding leading cryptocurrencies such as Ethereum.

Despite this victory, Consensys is pushing for more definitive regulations that support rather than hinder innovation. The company advocates for regulatory transparency that takes into account the unique aspects of crypto and decentralized platforms. This approach is essential because it aims to protect investors’ interests and promote technological progress without unnecessary restrictions.

“The SEC is a securities regulator, not a software regulator. Gary Gensler and the SEC should stay in their lane because they have important work involving real securities. They were distracted by this truly unlawful foray into the cryptocurrency space,” a Consensys spokesperson told BeInCrypto.

Read more: Who is Gary Gensler? Everything you need to know about the SEC chairman

The broader debate over the classification of digital assets remains a contentious issue in regulatory circles. While Bitcoin is generally accepted as a commodity, the SEC maintains that most other cryptocurrencies should be treated as unregistered securities under its supervision.