SEC Concludes Investigation into Ethereum 20 Impact on Ripple vs SEC Legal Battle

Consensys celebrates a significant victory for Ethereum developers, tech providers, and industry players with the Securities and Exchange Commission’s Enforcement Division closing its Ethereum 2.0 investigation. This decision follows Consensys’ letter to the SEC in June, affirming that the approval of the ETH ETF in May, which was based on ether’s classification as a commodity, would lead to the end of the Ethereum 2.0 inquiry.

While the Ethereum community welcomed this news with open arms, the XRP community expressed discontent with the SEC’s perceived bias. Consensys had previously taken legal action against the SEC on April 25, 2024, defending Ethereum’s status as a commodity and challenging the SEC’s authority to investigate or regulate it.

Bill Morgan criticized the SEC’s treatment of Ripple, highlighting Ethereum’s favorable treatment compared to Ripple’s ongoing regulatory challenges. The Pseudonymous analyst @digitalassetby also condemned the SEC’s actions, pointing out the significant financial burden Ripple has faced in dealing with regulatory issues compared to Ethereum.

A recent SEC filing suggested a lower penalty for Terraform Labs than the originally proposed $2 billion, further fueling speculation about the potential approval of an ETH ETF. The closure of the investigation raises hopes for ETH ETF approval, as the SEC typically does not approve public trading for companies under investigation.

Following the news, Ethereum’s price rose by 2.78%, reaching $3,544. Notably, a whale who had withdrawn over 16,000 ETH in the past 19 days purchased 5,603 ETH worth $19.7 million within an hour of the SEC’s announcement of the suspension of the Ethereum investigation.

Tags: Ethereum, Ripple (XRP)