Ethereum Rises Amid SEC Investigations: Ethereum (Ether) saw a significant increase amid speculation
that U.S. regulatory scrutiny of the blockchain system supporting the world’s second-largest digital asset might ease.
This rise also led Bitcoin and a range of smaller competing cryptocurrencies to record slight gains.
Contents
Performance of Ether and Its Value Increase
The Role of Ethereum Technology in the Market
Performance of Ether and Its Value Increase
Ether recorded its best rise this week, increasing by 3.6% on Wednesday before slightly retreating to trade at $3,562 as of 12:53 PM Singapore time.
This rise led Bitcoin, the market-leading cryptocurrency, and a range of smaller competing cryptocurrencies to record slight gains.
The Role of Ethereum Technology in the Market
Ether is used in the Ethereum blockchain, considered the most important network for financial services based on cryptocurrencies.
The U.S. Securities and Exchange Commission (SEC) investigation into the Ethereum Foundation highlighted
There is uncertainty about whether Ether is an unregistered security.
This status could reduce demand for the digital asset.
Conclusion of Investigations
In a post on platform X, Consensys, the leading developer of Ethereum, announced that
“the SEC’s Enforcement Division informed us that it will close its investigation into Ethereum 2.0.”
The company added that “the decision comes after we sent a letter on June 7 asking the SEC to confirm
that the approvals issued regarding the Ethereum exchange-traded fund in May,
which were based on considering the digital currency as a commodity, meaning that the SEC will close its investigation into Ethereum 2.0.”
The SEC did not immediately respond to a request for comment on Consensys’s claims,
noting that the request was sent outside official working hours.
Consensys had filed a lawsuit against the SEC in April to prevent Ethereum’s regulation.
SEC Audits
Last month, the SEC signed off on a proposal from platforms operated by Cboe Global Markets, Nasdaq,
and the New York Stock Exchange to list exchange-traded funds (ETFs) that invest directly in Ether.
Further approvals are still needed before applicants like BlackRock and Fidelity Investments can launch such products for the first time.
While Bitcoin is viewed as a commodity, the SEC says most other digital currencies are unregistered securities that should be subject to its oversight.
However, SEC Chairman Gary Gensler has been ambiguous about whether Ether is a security.
Cryptocurrency enthusiasts are concerned about the digital token and potential projects based on the Ethereum blockchain
being subject to the SEC’s strict and costly rules.
Bloomberg News reported in March that the SEC had sought information from companies
about their dealings with the Ethereum Foundation to review aspects of Ether.
The foundation’s website describes the organization as a nonprofit supporting Ethereum and related technologies.
Ethereum Rises Amid SEC Investigations