Ether Surges Above $3,500 as US SEC Concludes its Ethereum Investigation
Summary:
After Consensys announced that the US SEC is concluding its investigation into whether ETH is a security, Ether's value surged over the $3,500 mark. The SEC's decision has boosted investor confidence and relieved concerns over potential securities law violations. Its effects were seen almost immediately, with the value of Ether increasing by around 1.4%, breaking its crucial $3,500 level. This news has been celebrated by many in the crypto community, and even led to a major purchase by an Ether 'whale'. This comes just over a month after the SEC approved spot Ether exchange-traded funds in the United States.
Ether (ETH) has successfully managed to rise over the $3,500 barrier again after a minor price increase followed the announcement by Consensys that the United States Securities and Exchange Commission is ceasing its examination of whether ETH meets the definition of a security. Up until the revelation by the company on June 19th via post on X, ETH was trading at $3,493. The post stated that SEC has decided to terminate its investigation - a development welcomed by cryptocurrency analysts as being extremely beneficial for the market. "The SEC's Enforcement Division has confirmed it's concluding its probe into Ethereum 2.0," the post read by Consensys. A swift response was seen in the Ether market as within 20 minutes, its value rose approximately 1.4%, hitting $3,541, surpassing the highly crucial, and frequently observed $3,500 mark, as per data collated from CoinMarketCap. At the point of reporting, the trading stands at $3,531. The ETH $3,500 mark holds immense significance for traders and has been acting as a principal support level over the previous 30 days. The minor value spike post the Consensys announcement is indicative of increased trust from investors and could alleviate the anxiety around possible legal breaches related to securities, including those involving ETH network transactions, in case SEC had decided to intervene. "The fact that SEC will not present allegations that the sales of ETH fall under securities transactions is worthy of notice," Consenys supplemented, leading to a torrent of cryptocurrency analysts acknowledging and cheering the news. Amidst the positive reactions, Delphi Ventures founding member Tom Shaughnessy commented "Ethereum’s big win," while CoinFund president Christopher Perkins stated, "A significant advancement for the Ethereum environment as we welcome a new regulatory structure for cryptocurrency." The announcement also saw larger holders, or Ether 'whales', demonstrating their faith with Lookonchain, a blockchain analysis firm, reporting an ETH purchase of 5,603 units, totaling roughly $19.6 million by a whale. This positive turn of events arrives a bit more than a month post the SEC granting its approval for spot Ether exchange-traded funds within the United States. The expectation is increasing that the final phase before trading, approval of the applicant’s Form S-1 registration documentations, is also moving ahead. SEC’s Chairperson, Gary Gensler, anticipates the commission's approval on the forms to come "sometime during this summer". Disclaimer: This news piece is devoid of any investment guidance or suggestions. Each investment or trading move entails risk and readers are advised to perform their due diligence before reaching a decision.
Published At
6/19/2024 7:35:55 AM
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