Ether price rises due to the closure of the SEC investigation
Kyiv • UNN
The U.S. Securities and Exchange Commission (SEC) has closed its investigation into the Ethereum Foundation, easing concerns about possible regulation of the second-largest cryptocurrency.
This week, the Ether token showed the best growth, given speculation that US regulatory control over the blockchain ecosystem supporting the second-largest digital asset may be easing.
Writes UNN with reference to Bloomberg.
Details
On Wednesday, the token rose by 3.6% before dropping slightly to $3,562. This growth has had a positive impact on Bitcoin as well as some of its smaller competitors.Ether is a coin on the Ethereum blockchain, which is a key network for cryptocurrency-based financial services. The US Securities and Exchange Commission's (SEC) investigation into the Ethereum Foundation has created uncertainty over whether Ether is an unregistered security, which could have reduced demand for this digital asset.Ethereum developer Consensys, in a post on X, noted that the SEC's Division of Enforcement has closed its investigation into Ethereum 2.0. This decision follows a letter dated June 7, in which Consensys asked the SEC to confirm that the May approvals of ETH-based ETFs meant the investigation was closed.
The Securities and Exchange Commission did not comment on Consensys' claims because the request was made after hours. In April, Consensys sued the SEC to prevent Ethereum from being regulated. Last month, the agency approved proposals from Cboe Global Markets Inc., Nasdaq and the New York Stock Exchange to list ETFs that invest directly in Ether.
Further approvals are needed before companies such as BlackRock Inc. and Fidelity Investments can introduce these products to the market. The SEC maintains that most tokens are unregistered securities subject to its oversight, although Bitcoin is considered a commodity. However, SEC Chairman Gary Gensler was not clear on the status of Ether. Crypto enthusiasts fear that the token and Ethereum-based projects may fall under the agency's strict rules.
Recall
The price of bitcoin remained almost unchanged in Asian markets, while other cryptocurrencies declined due to expectations of an interest rate hike by the Federal Reserve, which offset the positive developments.
