Ethereum soars above $3,500 after SEC clears regulatory hurdles

The value of Ethereum has surged past $3,500 following the conclusion of a lengthy investigation by the U.S. Securities and Exchange Commission (SEC).

Previously, there were doubts that Ethereum might be classified as an unregistered security. These uncertainties have been of great concern to investors and have affected the market performance of assets. However, with the conclusion of the investigation, investor confidence was restored, and the market value of Ethereum rose slightly.

Ethereum is safe from the SEC

The SEC's investigation focused on the Ethereum Foundation and raised questions about whether Ethereum should be regulated as a security. This classification could have a serious impact on the demand for digital assets.

In response , ConsenSys, a key institution in the Ethereum ecosystem, filed a lawsuit on April 25, 2024. The lawsuit challenged the SEC's jurisdiction, arguing that Ethereum is a commodity and therefore should not be subject to strict SEC regulations.

Read more: Ethereum (ETH) price prediction for 2024/2025/2030

ConsenSys' legal action was a strategic move against the perception that regulation was excessive. The lawsuit sought judicial confirmation that Ethereum is not a security.

Support for ConsenSys' position has grown as it has received support from the public and political circles. It culminated in the filing of a formal petition on June 7, urging the SEC to reconsider its position.

Then, on June 18, the SEC's enforcement division responded positively.

ConsenSys announced , “Today, the SEC Enforcement Division notified us that it has concluded its investigation into Ethereum 2.0 and will not take enforcement action against ConsenSys.”

Following this announcement, Ethereum rose in price, trading at $3,563. This reaction demonstrates the market's sensitivity to regulatory news, especially for major cryptocurrencies such as Ethereum.

Despite these victories, ConsenSys is pushing for more robust regulations that encourage rather than stifle innovation. ConsenSys advocates regulatory clarity that accommodates the unique aspects of cryptocurrencies and decentralized platforms. This approach is essential to protect investor interests and promote technological advancement without undue restrictions.

“The SEC is a securities regulator, not a software regulator. Gary Gensler and the SEC have important work to do with real securities, so they need to stay true to their jobs. They are being distracted by this illegal excursion into the cryptocurrency space,” a ConsenSys spokesperson told BeInCrypto.

Read more: Who is Gary Gensler? Everything you need to know about the SEC Chairman

The broader debate over the classification of digital assets continues to be a contentious issue within regulators. Although Bitcoin is generally recognized as a commodity, the SEC argues that most other cryptocurrencies should be treated as unregistered securities and overseen.