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Ethereum’s price soared on June 18, posting its largest weekly gain, fueled by news that the US Securities and Exchange Commission (SEC) had halted its investigation into ETH.
The price surged 3.6% before slightly retreating, ultimately settling at $3,562.
Whale Buys $19.6M Ethereum As Investigation Eases
ConsenSys, a leading blockchain software company, announced on X that the US SEC has dropped its investigation into Ethereum, declaring that Ether sales do not qualify as “securities transactions.”
The blockchain company said it had sought clarity from the regulator in a June 7 letter, asking the SEC for Ether’s status following recent spot Ether ETF approvals.
In the wake of ConsenSys’ announcement, Etherrum price surged by around 3.6%, reaching $3,541. Previously, Ethereum’s price had fluctuated, dropping to $3,300 within the last 30 days. It currently trades at $3,539.
The news also sparked significant activity among large investors.
Lookonchain, a popular blockchain tracker, revealed that an ETH Whale swiftly accumulated 5,603 Ethereum (worth $19.6 million) following the announcement.
The SEC had previously issued a subpoena to the Ethereum Foundation in March 2024 to classify ETH as a security but has now dropped the investigation.
While Bitcoin is widely viewed as a commodity, the US regulator had argued that most alternative coins are unregistered securities that should fall under its regulatory control, which resulted in heightened scrutiny and uncertainty for Ethereum and its products.
US SEC Softens Crypto Policy Ahead of Upcoming Election
The US SEC has recently seemingly relaxed its stance on cryptocurrency regulations. Many observers credit this shift to crypto’s emergence as a highly contested issue in the 2024 US presidential election campaign.
This shift follows an aggressive crackdown on the crypto industry, marked by lawsuits and criminal charges against key figures after the collapse of several firms two years ago.
Crypto leaders, including Ripple CEO Brad Garlinghouse, consider the November 2024 election a watershed moment for digital currencies in the US. Garlinghouse believes candidates can gain more support and win votes by being pro-crypto.
