The U.S. Securities and Exchange Commission (SEC) has completed its investigation into Ethereum 2.0, Consensys announced on June 19. This development removes a significant regulatory obstacle and enhances the chances of an Ethereum Exchange-Traded Fund (ETF) launching in July.
Consensys disclosed that the SEC’s Enforcement Division has closed its probe into Ethereum 2.0, signaling that no charges will be filed against ETH sales as securities transactions.
The conclusion of the investigation came after Consensys sent a letter to the SEC on June 7, questioning whether the approval of spot Ether ETFs in May implied the end of the investigation. In response, the SEC confirmed through Consensys senior counsel Laura Brookover that no enforcement action against Ethereum was planned.
Consensys had filed a lawsuit against the SEC in April, claiming that the regulator’s actions were an attempt to influence the cryptocurrency’s future. Although the lawsuit is ongoing, Consensys is seeking further regulatory clarity, particularly regarding the legality of offering user interface software like MetaMask Swaps and Staking.
After the SEC’s announcement, Ethereum’s price rose by 2.86% in 24 hours, reaching $3,546.54. This increase reversed a series of declines attributed to aggressive futures selling.
Recent data from CryptoQuant indicates that Ethereum exchange reserves have decreased from 18.7 million ETH to 16.7 million ETH in 2024. This trend suggests that investors are moving their ETH holdings off exchanges, showing strong confidence and a positive outlook. The reduced supply on exchanges could lead to higher prices, reflecting positive market sentiment, especially following the SEC’s decision to close its investigation.
SEC Chair Gary Gensler suggested that final approvals for Ethereum ETFs are anticipated this summer. During a June 13 hearing before the Senate Appropriations Subcommittee on Financial Services, Gensler mentioned, “Individual issuers are still in the process of registering, which is proceeding smoothly.” He emphasized that approval would depend on the quality of investor disclosures.
This timeline aligns with Bloomberg analyst Eric Balchunas’s forecast that Ether Spot ETFs could begin trading by July 2, with approvals likely before the July 4 holiday. He noted that the SEC’s recent actions indicate a positive outlook for Ethereum ETFs.