Ethereum (ETH) has reclaimed the $3,500 mark following a significant announcement from Consensys indicating the closure of the United States Securities and Exchange Commission (SEC) investigation into Ethereum’s status as a security.
ETH, which had been trading around $3,493, surged immediately after Consensys confirmed on X (formerly Twitter) that the SEC would no longer pursue its investigation into Ethereum. This development marks a pivotal moment for the cryptocurrency industry, particularly for Ethereum, as regulatory uncertainties loomed over its classification.
Consensys, a leading blockchain technology company, announced, “The SEC’s Enforcement Division has informed us that it is closing its investigation into Ethereum 2.0.” This news swiftly propelled Ether’s price, with the cryptocurrency jumping 1.4 percent to $3,541 within 20 minutes of the announcement. Currently, ETH is trading around $3,531, reflecting renewed investor confidence and optimism in the market.
The $3,500 level has been crucial for ETH traders, serving as both a psychological barrier and support level in recent trading sessions. The swift reaction to Consensys’ update underscores the market’s relief over potential alleviation of regulatory concerns related to Ethereum transactions and compliance with securities laws.
“This means that the SEC will not file charges alleging that the sale of ETH is a securities transaction,” added Consensys, eliciting positive reactions from crypto commentators and industry experts alike.
Tom Shaughnessy, founding partner of Delphi Ventures, described it as “a huge win for Ethereum,” emphasizing the significance of regulatory clarity for the Ethereum ecosystem. Christopher Perkins, President of CoinFund, echoed this sentiment, stating it was “a huge relief” as the crypto industry navigates a new regulatory landscape.
The announcement also bolstered confidence among Ether whales, with reports from Lookonchain revealing a significant purchase of 5,603 ETH worth approximately $19.6 million by a single whale investor shortly after the news broke.
Just a month prior to this announcement, the SEC had approved Ether spot ETFs in the United States, marking another positive regulatory milestone for Ethereum. With ongoing developments, there is growing anticipation within the community regarding the approval of applicants’ S-1 registration statements, which SEC Chairman Gary Gensler expects to progress “sometime this summer.”
Overall, the closure of the SEC investigation into Ethereum represents a pivotal moment for the cryptocurrency market, signaling increased regulatory clarity and potentially opening doors to further institutional adoption and market expansion for Ethereum and its ecosystem. As developments unfold, market participants continue to monitor regulatory updates that could influence the future trajectory of Ethereum and the broader crypto industry.