SEC Ends Ethereum 2.0 Probe, Won't Sue Consensys

The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Consensys, a technology incubator company behind the MetaMask wallet, and will not pursue enforcement action against it. This decision was announced in letters sent to Consensys' lawyers, ending the probe into "Ethereum 2.0." While the SEC explicitly stated they are not recommending an enforcement action, the letters also emphasized that this does not mean the agency won't pursue future action against Consensys. The letters did not mention Ethereum, the second-largest cryptocurrency by market capitalization, explicitly but were referenced in the subject line. Following the news, the price of ether (ETH) rose by 2.6%, indicating market optimism about the outcome. This decision comes after Consensys sued the SEC in April, alleging that the regulator was investigating whether Ethereum could be considered a security. The SEC had previously approved certain spot ether exchange-traded fund (ETF) application filings, which further fueled the debate surrounding Ethereum's status. However, with the SEC's decision to close its investigation, the crypto market has shown positive signs.