By Free Pass, Ethereum Survives Further Regulatory Scrutiny

Ethereum has received a free pass from the US Securities and Exchange Commission (SEC) as the regulator decided to drop its investigation into the altcoin for allegedly selling the token as a security. SEC’s enforcement division has notified Ethereum developers that the investigation into Ethereum 2.0 is being closed.

Thid news comes as a win for Ethereum holders and the DeFi ecosystem, as Ethereum surged to a peak of $3,573 on Binance after the news.

Ethereum’s gains can be attributed to the end of the regulator’s scrutiny of Ethereum 2.0. In March, the SEC had reached out to firms seeking information about the Ethereum Foundation’s dealings.

Ethereum developers announced that in response to a letter, the agency informed that it was closing its probe into Ether. This comes as a win to ETH holders awaiting the debut of Spot Ethereum ETFs, likely in July.

The SEC’s probe into Ether was intended to ascertain whether the altcoin is an unregistered security. If Ethereum would turn out to be a security, it could impact the Spot Ethereum ETF, the DeFi ecosystem, Layer 2 and 3 chains and their tokens. Analysts say that the end of the SEC’s probe brings welcome relief to ETH holders.

Lookonchain noted that the news of SEC closing its investigation into Ether was followed by a large-wallet investor buying $19.6 million worth of ETH. The whale wallet has withdrawn 16,604 ETH (worth around $59 million) at an average price of $3,600 from Binance since May 30, prior to the news of the investigation being closed.