Ethereum Has Rebounded Above $3,500 As Consensys Announced The SEC Will Discontinue Its ETH Investigation.

Consensys announced today that the U.S. Securities and Exchange Commission (SEC) has closed its investigation into Ethereum 2.0. The blockchain company described this development as a "major win" for the cryptocurrency industry, "Ethereum survives the SEC," Consensys stated in an X post.

Following the announcement, Ethereum (ETH) experienced a price increase of about 1.4%, rising from $3,493 to $3,541. This surge breached the pivotal $3,500 threshold, which has been a significant support and resistance level for traders in the last month.

The announcement was received with heightened investor confidence, which may ease worries regarding potential violations of securities laws. Remarkably, a prominent investor, often referred to as a "whale," acquired 5,603 ETH valued at approximately $19.6 million soon after the announcement.

The SEC's decision came after a letter from Consensys on June 7, seeking confirmation that the May approval of spot ether exchange-traded funds (ETFs) indicated the conclusion of its investigation into Ethereum 2.0. The approval of these ETFs, while not yet final, was based on the premise that ETH tokens are commodities rather than securities.

Although SEC Chair Gary Gensler has not conclusively declared ether as a security, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam has classified ether as a commodity. This classification is vital for regulatory and legal reasons, affecting the treatment of ether under U.S. law.

The closure of the SEC investigation into Ethereum 2.0 is seen as a positive development for the broader cryptocurrency industry, potentially setting a precedent for how digital assets are regulated in the United States.