The U.S. Securities and Exchange Commission (SEC) has permanently closed its investigation into Ethereum, sparking a rally in ETH and altcoins. While this move has gained skepticism, especially in the XRP community, it raises the question: Does Ethereum's status as a commodity mean that other proof-of-stake (PoS) cryptocurrencies, such as Solana, Cardano, and Polygon, are also considered commodities?

Solana, Cardano, Polygon: Commodities or Securities?

The SEC's decision to end its Ethereum investigation has led to speculation that other PoS cryptocurrencies may also be out of the SEC's jurisdiction. The SEC has previously alleged that Solana, Cardano, and Polygon are securities in lawsuits against Binance and Coinbase. However, a former SEC securities lawyer, Marc Fagel, cautioned against making such a leap, stating that the prevalence of serious defenses (not present for other crypto) was likely a significant factor in the SEC's decision.

Unusual Move by the SEC

The SEC's decision to send a closing letter to Consensys, the Ethereum Foundation, is considered an unusual move. According to Paradigm's government affairs lead, Alexander Grieve, the SEC is "under no obligation to do so." Additionally, 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.

Consensys' Lawsuit Against the SEC

Consensys revealed that the SEC Enforcement Division has closed its investigation into Ethereum 2.0, as per a letter sent by SEC Assistant Director Kristin M. Pauley on June 18. The company claimed this is a major win for Ethereum developers, technology providers, and industry participants. However, Consensys said it will continue to challenge the SEC in the lawsuit, seeking a declaration that offering the user interface software MetaMask Swaps and Staking does not violate securities laws.

The SEC's decision to close its Ethereum investigation has sparked a flurry of speculation and discussion within the crypto community. While the implications for other PoS cryptocurrencies remain unclear, the move has undoubtedly provided Ethereum with greater regulatory clarity, which could have significant implications for the broader crypto ecosystem.