Are Solana, Cardano, Polygon Commodities As US SEC Ends Ethereum Investigation?

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As an experienced financial analyst, I have closely followed the developments in the cryptocurrency space, particularly regarding regulatory clarifications and their impact on various projects. The recent announcement by the U.S. Securities and Exchange Commission (SEC) that it has permanently closed its Ethereum investigation has indeed sparked a rally in ETH and other altcoins, leading to speculation about the implications for proof-of-stake (PoS) cryptocurrencies like Solana, Cardano, and Polygon.

The SEC’s decision to permanently end its investigation into Ethereum has led to a surge in the price of ETH and other altcoins. This news, though met with some skepticism, raises the question: if Ethereum is considered a commodity, does this classification extend to all proof-of-stake cryptocurrencies like Solana, Cardano, and Polygon? While it’s an intriguing idea, it’s essential to remember that each digital asset has unique characteristics and regulatory interpretations may vary. Therefore, while Ethereum’s commodity status doesn’t automatically make other PoS assets commodities, the SEC’s decision could influence future regulatory discussions.

Solana, Cardano, Polygon, Other PoS Crypto Are Commodity?

The Securities and Exchange Commission (SEC) wrapping up its Ethereum probe fueled debate that assets like Solana, Cardano, Polygon, and others operating under the proof-of-stake (PoS) consensus mechanism could potentially be classified as commodities. Additionally, Ether’s advancement in securing regulatory clarity has surpassed both Bitcoin and XRP in this regard.

Expert: Mr. Huber, a well-known XRP analyst, posed a question to Marc Fagel, a former SEC securities lawyer, about the implications of the SEC classifying Ethereum as a commodity for proof-of-stake (PoS) cryptocurrency projects like Solana, Cardano, and Polygon. The SEC’s recent decision regarding Ethereum has drawn attention to these major PoS cryptos, which have been identified as securities in lawsuits against Binance, Coinbase, and other platforms.

Based on the information available to me, I wouldn’t come to that conclusion. The SEC’s decision to end their investigation into this matter is unclear, but it’s likely that strong defense arguments played a significant role in their decision-making process for this specific crypto, as opposed to others.

— Marc Fagel (@Marc_Fagel) June 19, 2024

Alexander Grieve, the government affairs representative at Paradigm, noted that it’s not common for the Securities and Exchange Commission (SEC) to make a public statement following the conclusion of an investigation into a company. The SEC holds no compulsion to issue such announcements. Additionally, the Ethereum Foundation was involved in the probe but wasn’t delivered any correspondence regarding the matter.

It is uncommon for Marc Fagel to compose a concluding missive to just one party when there were ongoing matters concerning another party during an investigation.

Will Consensys Drop Lawsuit Against SEC?

According to ConsenSys, the SEC Enforcement Division has concluded its investigation into Ethereum 2.0 as indicated in a letter from SEC Assistant Director Kristin M. Pauley, dated June 18. ConsenSys described this development as a significant victory for Ethereum developers, technology providers, and industry players.

In reaction to a request from Consensys, the SEC has chosen to act. The approval of Ethereum-based ETFs in May hinged significantly on Ethereum being classified as a commodity by the SEC.

I, ConsenSys, will persist in contesting the SEC’s stance in the ongoing lawsuit. Our objective is to secure a ruling from the SEC that our provision of MetaMask Swaps and Staking services does not infringe upon securities laws.

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2024-06-19 14:04