Are Solana, Cardano, Polygon Commodities As US SEC Ends Ethereum Investigation?
Highlights
- US SEC permanently closing its Ethereum investigation sparked a rally in ETH and altcoins, as well as skepticism.
- Solana, Cardano, Polygon, and other proof-of-stake (PoS) may also be out of the SEC's jurisdiction.
- Former SEC official revealed that a letter to Consensys is indeed a unusual move by the SEC.
The U.S. Securities and Exchange Commission (SEC) has permanently closed its Ethereum investigation, which sparked a rally in ETH and altcoins. While the move by the SEC has gained skepticism, especially in the XRP community, does Ether gaining status as a commodity means all proof-of-stake (PoS) cryptocurrencies such as Solana, Cardano, and Polygon are commodities?
Solana, Cardano, Polygon, Other PoS Crypto Are Commodity?
The SEC’s ending Ethereum investigation sparked speculation that Solana, Cardano, Polygon, and other proof-of-stake (PoS) could also be commodities. Also, Ether has leaped over Bitcoin and XRP in terms of gaining regulatory clarity.
Popular XRP sleuth Mr. Huber asked former SEC securities lawyer Marc Fagel whether the SEC now considering Ethereum as a commodity means anything for proof of stake crypto projects. The latest move by the SEC brings major PoS crypto such as Solana, Cardano, and Polygon in the spotlight. The SEC has alleged Solana, Cardano, and Polygon as securities in Binance, Coinbase, and other lawsuits.
I have no visibility into their thinking but, no, I wouldn’t make that leap. I don’t know what evidence (or lack of such) led the SEC to close the investigation, but I assume the prevalence of serious defenses (not present for other crypto) was a big factor.
— Marc Fagel (@Marc_Fagel) June 19, 2024
Alexander Grieve, government affairs lead at Paradigm, said that it is relatively unusual for the SEC to highlight a company in response to a closure of an investigation. The SEC is “under no obligation to do so.” Also, Ethereum Foundation was part of the investigation, but it didn’t receive any letter.
Marc Fagel agreed that it’s highly unusual to send a closing letter to one party if something was ongoing as to another party in an investigation.
Also Read: XRP, Cardano, & 7 Other Communities Must Watch This Key Move By Binance
Will Consensys Drop Lawsuit Against SEC?
Consensys revealed that the SEC Enforcement Division has closed its investigation into Ethereum 2.0, as per a letter send by SEC Assistant Director Kristin M. Pauley on June 18. The company claimed it’s a major win for Ethereum developers, technology providers, and industry participants.
The move comes in response to a letter sent by Consensys seeking confirmation from the SEC. The May ETH ETF approvals by the SEC were largely a result of ETH’s status as a commodity.
Consensys said it will continue to challenge the SEC in the lawsuit. The company seeks a declaration from the SEC that offering the user interface software MetaMask Swaps and Staking does not violate the securities laws.
Also Read: The Sandbox Expands Memecoin Chest With DOGE, PEPE, SHIB Purchase
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