The US Securities and Exchange Commission (SEC) has permanently closed its Ethereum investigation, which led to a rise in ETH and altcoins. Although this move by the SEC raises doubts, especially in the XRP community, does Ether gaining status as a commodity mean that all proof-of-stake (PoS) cryptocurrencies such as Solana (SOL), Cardano, and Polygon are commodities?
What will happen to SOL, MATIC with the Ethereum decision?
As we reported as Kriptokoin.com, the permanent closure of the Ethereum investigation initiated by the US Securities and Exchange Commission (SEC) created excitement in the cryptocurrency markets. While this decision raises doubts in the XRP community, does it mean that Ether’s status is not a security and how will this affect other Proof-of-Stake (PoS) cryptocurrencies, namely assets such as Solana (SOL), Cardano, and Polygon?
The SEC’s closure of its Ethereum investigation has led to speculation that other PoS cryptocurrencies such as Solana, Cardano, and Polygon will also not be classified as securities. With this development, Ether has moved ahead of Bitcoin and XRP in terms of regulatory certainty.
The XRP community also took action
Mr. Huber, a well-known figure in the XRP community, asked former SEC securities attorney Marc Fagel what would happen to other PoS projects if the SEC does not consider Ethereum a security. This development also left a question mark on important PoS cryptocurrencies such as Solana, Cardano and Polygon. Because the SEC had previously classified these cryptocurrencies traded on Binance, Coinbase and other exchanges as securities in the lawsuits it filed.
Marc Fagel said, “I don’t have a clear understanding of the SEC’s thinking, but I wouldn’t make that inference. I don’t know the evidence (or lack thereof) behind the SEC closing the investigation, but the presence of strong defenses (not found in other cryptocurrencies) was a big factor.” it could be.” He replied:
Will there be a statement from the SEC?
Alexander Grieve, head of government relations at Paradigm, said it was unusual for the SEC to single out one of the companies when the investigation was closed. “The SEC has no obligation to make such a statement,” Grieve said. said. Additionally, the Ethereum Foundation was part of the investigation but no letter was sent to them. Marc Fagel also confirmed that it is highly unusual for a party to be sent a closure notice while an investigation is ongoing.
Consensys announced that the SEC Enforcement Division closed its investigation into Ethereum 2.0 in a letter dated June 18. The company called this a big win for Ethereum developers, technology providers and industry participants. This decision came after Consensys requested confirmation in a letter to the SEC. The ETH ETFs approved in May are thought to be a result of ETH being classified as a security.
Consensys announced that it will continue its lawsuit against the SEC. The company is requesting a written confirmation from the SEC that its user interface software, MetaMask Swaps and Staking, does not violate securities laws. In short, it is not yet clear how Ethereum’s non-classification as a security will affect the status of other PoS cryptocurrencies. While the SEC’s stance on this issue remains unclear, the reactions of the XRP community are negative.
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