SEC Ends Investigation, Ethereum Price Surges 5%, Whale Activity Spikes
Just before the anticipated approval of the Ethereum ETF, the U.S. Securities and Exchange Commission (SEC) has brought exciting news to the Ethereum community.
According to recent reports, the SEC has informed ConsenSys that it is willing to end its investigation into Ethereum’s status as a security. Following this development, the price of Ethereum (ETH) rebounded by 5%, climbing back to nearly $3,600. Shortly after the news broke, a major Ethereum whale purchased 5,603 ETH.
ConsenSys announced that the company had been in contact with the SEC regarding its investigation into Ethereum 2.0. In a letter sent earlier this month, ConsenSys requested that the SEC clarify whether the approval of a spot Ethereum ETF would conclude the ongoing investigation.
ConsenSys assured that it would continue its legal efforts to further clarify the regulatory status of the MetaMask wallet’s swap and staking functions. In its lawsuit, ConsenSys seeks a declaration that offering these features does not violate securities laws under any circumstances.
The Ethereum software company emphasized that litigation is essential to achieving the regulatory clarity crucial for the industry’s prosperity. ConsenSys stated that clear guidelines are vital for the advancement of crypto technology and innovation.
Following the issuance of a Wells notice, the SEC has not yet filed charges against ConsenSys regarding MetaMask’s swap and staking features. ConsenSys disclosed the Wells notice in April, indicating that it might face charges in the coming days or weeks.
Ethereum’s price has strongly rebounded from a weekly low of $3,381. While ICO whales have been selling Ethereum recently, other major players have been accumulating ETH from exchanges.
According to on-chain data provider Santiment, a prominent whale has withdrawn a total of 16,604 ETH, worth $58.6 million, from the cryptocurrency exchange Binance over the past 19 days. This whale reportedly purchased these tokens at an average price of $3,600.
Interestingly, one hour after the SEC announced the permanent suspension of its investigation into Ethereum, the whale purchased an additional 5,603 ETH, valued at $19.7 million.
