The Implications of the SEC Ending Ethereum Investigation on Solana, Cardano, and Polygon

The recent announcement by the U.S. Securities and Exchange Commission (SEC) permanently closing its Ethereum investigation has sparked discussions around the classification of cryptocurrencies as commodities. This move has not only provided clarity on Ethereum but has also raised questions about other proof-of-stake (PoS) cryptocurrencies like Solana, Cardano, and Polygon.

Are Solana, Cardano, and Polygon Considered Commodities?

With the SEC’s decision regarding Ethereum, there is speculation in the crypto community that other PoS projects, such as Solana, Cardano, and Polygon, could also be classified as commodities. This development has brought these projects into the regulatory spotlight, alongside Ether, which has now surpassed Bitcoin and XRP in terms of gaining regulatory clarity.

While the SEC has previously alleged Solana, Cardano, and Polygon as securities in various lawsuits with platforms like Binance and Coinbase, the recent developments around Ethereum’s classification have raised questions about how these PoS cryptocurrencies will be treated in the future.

According to Alexander Grieve, government affairs lead at Paradigm, the SEC’s decision to highlight a company’s status following the investigation closure is relatively unusual. The Ethereum Foundation, which was part of the investigation, did not receive a similar letter from the SEC, indicating a nuanced approach by the regulatory body.

Former SEC securities lawyer Marc Fagel noted that it is uncommon for the SEC to issue closing letters to one party while investigating another related party. This suggests that the regulatory landscape for PoS cryptocurrencies may see shifts in response to the recent developments.

Consensys and the SEC Investigation

Consensys, a prominent blockchain company, recently revealed that the SEC Enforcement Division has closed its investigation into Ethereum 2.0. This move comes after Consensys sought confirmation from the SEC regarding the status of the project. The SEC’s decision to close the investigation was seen as a positive development for Ethereum developers, technology providers, and industry participants.

Despite the investigation closure, Consensys stated that it will continue to challenge the SEC in an ongoing lawsuit. The company is seeking clarity from the SEC on whether offering certain services like MetaMask Swaps and Staking complies with securities laws, highlighting the importance of regulatory clarity for blockchain companies.

As the regulatory landscape evolves and more clarity is provided by the SEC regarding cryptocurrencies like Ethereum, the industry will closely monitor how other PoS projects, including Solana, Cardano, and Polygon, are classified and regulated in the future.