Consensys Wins Major Victory as SEC Closes Ethereum 2.0 Investigation, XRP Community Lashes Out

Consensys announced a major win for Ethereum developers, technology providers, and industry participants as the Enforcement Division of the SEC

Consensys has announced a major victory for Ethereum developers, technology providers, and industry participants. The Enforcement Division of the SEC has announced that it will be closing its Ethereum 2.0 investigation.

This news follows a letter sent by Consensys to the SEC in June, seeking confirmation that the approval of the ETH ETF in May—which was based on ether being classified as a commodity—would lead the agency to close its Ethereum 2.0 investigation.

While this news was met with celebration by the Ethereum community, it sparked outrage among the XRP community, which accused the SEC of biased treatment.

Consensys had previously filed a lawsuit against the SEC on April 25, 2024, in an effort to protect the Ethereum ecosystem. The lawsuit aimed to obtain a court order that would halt the SEC’s investigation, arguing that ETH is a commodity and thus falls outside the SEC's jurisdiction to investigate or regulate.

XRP Community Highlights Disparities

Bill Morgan highlighted the disparity in treatment, pointing out that Ethereum received a second pass from the SEC nearly six years after the Hinman speech, which clarified Ethereum's non-security status. He further criticized the SEC's arbitrary approach to crypto regulations, as evidenced by the different treatment.

Pseudonymous analyst @digitalassetby also voiced strong criticism, noting that Ripple had spent over $100 million to deal with the SEC’s regulatory issues over the last years, while Ethereum had not faced such significant legal expenses.

A recent SEC filing offers a calculation for the settlement with Terraform Labs, indicating a substantially lower penalty than the proposed $2 billion in its opening brief on remedies.

ETH ETF Approval Imminent?

This closure of the SEC investigation is particularly noteworthy in the context of the upcoming ETH ETF approval, as the SEC cannot approve the public trading of a company it is actively investigating.

Ethereum’s price increased by 2.78% and is currently trading at $3,544. Interestingly, a whale who had withdrawn over 16000 ETH in the past 19 days purchased 5,603 ETH, valued at $19.7 million, an hour after the SEC announced its suspension of the Ethereum investigation.

News source：https://www.kdj.com/cryptocurrencies-news/articles/consensys-wins-major-victory-closes-ethereum-investigation-xrp-community-lashes.html

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