[TL; DR]
According to the SEC's latest revelation ETH is a commodit not a securit.
The prices of LDO, MKR and ETH spiked after the news of SECs designation of ETH as a commodit.
ETH is within a bearish market condition with no signs for a rebound.
Introduction
Current information on the crpto market has hinted that the United States SEC has given the green light that Ethereum (ETH) is a commodit, not a securit, which has generated a positive vibe within the digital sector. Probabl, this will be the best regulator clarit the SEC has given during 2024 and will set pace for the accelerated growth of the crpto industr. This article discusses the markets response to the crpto news that the US SEC has completed its investigation on Ethereum 2.0.
The Least Expected Blockchain Legal Developments U.S SEC Closure of Ethereum 2.0 Investigation
On 18 June ConsenSs, a blockchain software development compan, announced that it had successfull lobbied the United States SEC to classif Ethereum 2.0 (ETH) as a commodit, not a crpto securit. Posting on X ConsenSs said, Toda were happ to announce a major win for Ethereum developers, technolog providers, and industr participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0. Thus, the latest blockchain legal developments indicate that the SEC will not bring charges alleging that the sales of ETH are securities transactions.
It further clarified: The decision follows a letter we sent on June 7, asking the SEC to confirm that the Ma ETH ETF approvals, which were premised on ETH being a commodit, meant the agenc would close its Ethereum 2.0 investigation. Despite approving Ethereum ETFs the SEC had continued to waver its stance on ETHs status as a commodit rather than a securit. As we know, in Ma the SEC approved the registration of spot Ethereum ETFs.
Read also: What Happens if the SEC Classifies ETH a Securit?
As of now, the SEC has approved the ETH ETF proposals of several asset management firms, including Grascale, Fidelit, BlackRock, VanEck, and ARK Invest. Nonetheless, these firms will not launch their ETFs until the SEC approves their S-1 registration statements.
In April ConsenSs filed litigation against the SEC so it would clarif its position on the status of Ethereum, the second largest crptocurrenc b market capitaliation. The goal of ConsenSs SEC lawsuit was to ensure that Ethereum remains a vibrant and indispensable blockchain platform and to preserve access for the countless developers, market participants, and institutions who have a stake in the worlds second largest blockchain.
Later on, on 7 June ConsenSs sent a letter to the SEC seeking crpto regulator clarit on Ethereums status, considering that the regulator had alread approved the launch of ETH ETFs on the assumption that it is a commodit following its approval of spot bitcoin ETFs Januar.
Subsequentl, ConsenSs stated, through a blog post, that the SEC had indeed confirmed that ETH is a commodit. It said, Toda, the Enforcement Division of the SEC responded b notifing us that it is closing its investigation into Ethereum 2.0 and will not pursue an enforcement action against Consenss.
Ethereum 2.0 was a result of the Ethereum proof of stake transition. In fact, the Merge Upgrade transformed the blockchain from the proof-of-work (PoW) consensus mechanism to the proof-of-stake (PoS) one.
Ethereum's Price Surge and its Performance over the Month
The crptocurrenc market flipped bullish after the SEC confirmed that it will not continue with the Ethereum 2.0 investigation. Such a good piece of crpto news resulted in an Ethereum surge which triggered its price to trade above $3,500. In fact, the crpto market rall influenced the prices of several Ethereum blockchain based crptocurrencies to rise significantl. Apart from ETH, LIDO and ENS also rallied.
During the 24-hour period that stretched from 18 to 19 June the prices of leading Ethereum blockchain based tokens that include LIDO, ENS and Maker spiked b large margins. Specificall, the prices of Lido DAO's governance token (LDO), Maker (MKR) and Ethereum Name Service (ENS) rose b between 12% and 20%. On the other hand, Pendle, the native crptocurrenc of the ield trading protocol Pendle, was the biggest gainer after registering a 21% price surge.
Despite ETHs gain on 17 June when its price reached $3,595.95 it has lost much since then. CoinGecko statistics shows that the altcoin has lost b nearl 10% within the last 30 das as the following graph denotes. ETH 30-Da Price Chart - CoinGecko
As seen on The Graph, since 21 June the ETH price has been dropping to the current price, $3,474.44. Based on past and present crptocurrenc trends ETHs bearish momentum is likel to continue since the last two small candlesticks are red. The series of small red bars at the tip of the graph indicates low ETH volatilit and rising bearishness. Generall, the current altcoin performance shows a depressed crpto market.
Read also: Opportunities in Four Major Sectors of the ETH Ecosstem
Comparison of the Stock Performance and Crpto Market Outlook
During the period that the Ethereum blockchain based tokens were performing well, leading U.S listed stocks such as Dow and S&P 500 gained b small margins. When Ethereum spiked b 3% the Dow gained b 0.15% and the S&P 500 b 0.30%.
During the same period Solana climbed b 8%, the Polkadot price jumped b 7% while the Nasdaq Composite remained flat.
Conclusion
There was a short-lived crpto rall following ConsenSs X's post that the U.S. SEC will no longer continue with its Ethereum 2.0 investigation. In fact, the SEC confirmed that ETH is a commodit, not a securit. LDO, MKR, and ENS are examples of crptocurrencies whose prices rose after the news was released. In the meantime, ETH is bearish in line with the general prevailing crpto market sentiment.
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