Crypto, Blockchain, DLT

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>>> SEC drops investigation into Ethereum 2.0, in a major victory for the crypto industry

The halting of the SEC investigation boosted market confidence around the world's second-largest cryptocurrency.


The Street

by MARIO NAWFAL

JUN 19, 2024


https://www.thestreet.com/crypto/markets/sec-drops-investigation-into-ethereum-2-0-signaling-a-major-victory-for-the-crypto-industry


In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has closed its investigation into Ethereum 2.0, a move celebrated as a win for the sector. Scott Melker, host of The Wolf of All Streets podcast and Mario Nawfal, host of Mario Nawfal’s Roundtable, dove into the implications of this decision and what it means for the future of crypto regulation.

Melker highlighted the significance of the SEC's decision. "This is being touted as a huge win for the crypto industry. As they said, ethereum survives the SEC," Melker remarked, emphasizing that the SEC will not bring charges alleging that Ethereum 2.0's sales are securities transactions.

Nawfal pointed out the broader political context, noting recent shifts in the Biden administration's stance on crypto. He mentioned the surprise approval of an ethereum exchange-traded fund (ETF), suggesting that these moves indicate a softer approach towards the industry. "Great news for ethereum, but more importantly, great news for the industry. If this path continues, that pivot continues, then the election's going to be net positive for the industry," Nawfal added.

Melker highlighted the difficulty the SEC now faces in pursuing ethereum as a security after approving its spot ETF, effectively classifying it as a commodity. This marks the first time a Wells Notice issued to a crypto entity has been withdrawn, possibly signaling a more lenient regulatory environment as this year's election approaches.

Reading from the SEC’s letter, Nawfal noted, "The commission is instructing its staff that in cases where such action appears appropriate, they may advise the person under inquiry that a small investigation has been terminated." This official stance underscores the significant shift in the regulatory landscape.

While the decision is positive news for ethereum and other altcoins, questions remain about the future regulatory treatment of ethereum competitors like Solana, Matic, and Cardano, which have been passively named in ongoing lawsuits against major exchanges.

The crypto market has responded positively, with ethereum and other cryptocurrencies experiencing a modest rally. However, the long-term impact will depend on how the SEC proceeds with its regulatory actions against other crypto assets. As Melker concluded, "The best-case scenario is that we get no clarity on anything for the next six months and just don't get more attacks on the industry."

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