Photo credit: Graeme Sloan/Bloomberg

The United States Securities and Exchange Commission (SEC) is closing its investigation into Ethereum 2.0 to determine whether the network’s native token, Ether (ETH), is a security.

“The Enforcement Division of the SEC responded by notifying us that it is closing its investigation into Ethereum 2.0, Ethereum developer Consensys said on June 18, adding that the securities regulator will not pursue any enforcement action against them.

Consensys also took to X to explain that the development means that “the SEC will not bring charges alleging that sales of ETH are securities transactions.” 

“The decision follows a letter we sent on June 7, asking the SEC to confirm that the May ETH ETF approvals, which were premised on ETH being a commodity, meant the agency would close its Ethereum 2.0 investigation,” Consensys added.

Consensys senior counsel Laura Brookover shared the SEC’s letter, which confirms the closing of the investigation and that no charges will be filed against any entity.

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The Ethereum developer sued the SEC on April 25 in an effort to “defend the Ethereum ecosystem.” At the time the lawsuit was filed, it sought a court order to halt the regulator’s probe into Ethereum because ETH is a commodity and outside of the SEC’s jurisdiction. Before that, Consensys said they received a Wells notice from the agency, warning the firm that its MetaMask crypto wallet may have violated securities laws.

Consensys said that while the closing of the Ethereum probe is a “major win for Ethereum developers, technology providers, and industry participants,” it’s not a remedy to the SEC’s “unlawful and aggressive crypto enforcement regime.”

The firm stated that it still seeks a declaration that offering Metamask Swaps and Staking does not violate the securities law.

ETH price rallies

Ether post its best climb this week on the back of Consensys’ announcement, rising as much as 2.5% on June 19. At the time of writing, the token exchanges hands at more than $3,500 per CoinMarketCap.

The $3,500 price point has been a pivotal battleground for Ether traders, with the crypto asset repeatedly fluctuating around this level. It has served as a significant support level over the last month.

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