Ether has surged back above $3,500 following Consensys’ announcement that the U.S. Securities and Exchange Commission (SEC) is ending its investigation into whether ETH is a security.
Prior to the announcement, ETH was trading at $3,493. The news, shared on June 19, indicated the SEC will close its probe, which crypto commentators have deemed significant for the industry.
“The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0,” Consensys stated.
Following this, Ether rose by approximately 1.4% to $3,541 within 20 minutes, surpassing the critical $3,500 level. As of the time of writing, it is trading at $3,531, according to CoinMarketCap data.
The $3,500 mark is a significant level for traders, as Ether has consistently hovered around it over the past month, serving as a key support level.
The announcement from Consensys has bolstered investor confidence, alleviating concerns about potential securities law violations for ETH transactions if the SEC had decided to take action.
“This means that the SEC will not bring charges alleging that sales of ETH are securities transactions,” Consensys elaborated, leading to widespread celebration among crypto commentators.
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“Huge win for Ethereum,” noted Tom Shaughnessy, founding partner of Delphi Ventures.
“A major unlock for the Ethereum ecosystem as we enter a new regulatory regime for crypto,” added Christopher Perkins, president of CoinFund.
In response to the announcement, Ether whales demonstrated confidence, with blockchain analysis firm Lookonchain reporting a whale purchasing 5,603 ETH, valued at around $19.6 million.
This development follows the SEC’s recent approval of spot Ether exchange-traded funds (ETFs) in the United States, a move that has further fueled optimism in the market.
There is growing confidence that the final stage before trading, which involves the approval of the applicant’s Form S-1 registration statements, is progressing smoothly.
SEC Chair Gary Gensler has indicated that the commission expects to approve these filings “sometime over the course of this summer.”
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