MetaMask developer Consensys: SEC determines that ETH is not a security! Will the Ethereum spot ETF pass in July?

The U.S. Securities and Exchange Commission (SEC) has been reluctant to comment on whether "Ethereum" should be classified as a security? Against this background, Consensys, the parent company of Little Fox Wallet Metamask, received a Wells Notice from the SEC in April. The SEC determined that Consensys was an unlicensed broker-dealer and intended to take enforcement action on the grounds that MetaMask Wallet violated securities laws.

In order to defend the Ethereum ecosystem, Consensys also filed a complaint with the SEC that month, accusing the SEC of intending to recognize Ethereum as a security, which was an "illegal seizure of power" over Ethereum, and requested the court to declare that Ethereum is not securities, and contends that any investigation into ConSenSys based on the premise that Ethereum is a security would violate administrative procedures.

SEC will end its investigation into Ethereum

After two months of silence, Consensys tweeted earlier today (19th) to announce that the SEC will end its investigation into Ethereum. And will not accuse Ethereum sales of being securities trading: Today we are pleased to announce that Ethereum developers, technology providers, and industry participants have achieved a major victory: the SEC Enforcement Division has notified us that it is ending its investigation of Ethereum 2.0 investigation, which means the SEC will not charge that the ETH sale is a securities transaction. This decision follows a letter we sent on June 7, in which we asked the SEC to confirm that the approval of the Ethereum Spot ETF in May was based on the premise that Ethereum is a commodity, which means the SEC The investigation into Ethereum 2.0 will be concluded. Ending the Ethereum investigation is significant, but it does not resolve the pain that many blockchain developers, technology providers, and industry participants have suffered under the SEC’s unlawful and aggressive crypto enforcement regime.

Although the SEC has not yet made an official announcement, as Consensys said, it is equivalent to the SEC recognizing that Ethereum is a commodity, not a security, just like Bitcoin, and it means that Ethereum may be used in the future. He will no longer face legal trouble, which is of great significance.

However, Consensys continued to point out that the company’s lawsuit with the SEC is still ongoing, and it is still seeking the SEC to show that MetaMask Swaps and Stake do not violate securities laws. Perhaps affected by the news that the SEC will end its investigation into Ethereum, the price of ETH rebounded more strongly than Bitcoin today. Since 3 a.m., it has risen from around US$3,400 to US$3,534, an increase of nearly 4% in 7 hours.

Ethereum spot ETF issuers will respond to SEC comments before Friday

At the same time, when the Ethereum spot ETF will be officially listed has also attracted attention. The SEC approved eight Ethereum stocks last month. After the spot ETF issuer submits the 19b-4 document (change in exchange rules), the issuer still needs to wait for the SEC to approve its S-1 document (registration statement) before it can officially start listing and trading.

According to The Block, two people familiar with the matter revealed that the Ethereum spot ETF issuer has received comments from the SEC on the S-1 filing last week and plans to submit a response by this Friday. A publisher source said the latest round of comments were "reasonable" and expected approval soon, while a source at another publisher called the comments "lighthearted."

Bloomberg ETF analyst James Seyffart pointed out that Bitwise has submitted a revised S-1 document to the SEC on the 18th. The content of the document may still need to be adjusted and requires final approval by the SEC. He and another analyst Eric Balchunas believes that the Ethereum spot ETF should be launched before July 4.

SEC Chairman Gary Gensler previously stated that the S-1 filing for the Ethereum spot ETF is expected to be approved sometime this summer, and the approval time will depend on the issuer’s response to SEC feedback.

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