The Securities and Exchange Commission (SEC) has closed its investigation into Consensys, a blockchain and web3 development company, regarding Ethereum 2.0. This decision has raised questions about the legal status of ether, the native cryptocurrency of the Ethereum network. While Consensys has hailed the closure of the investigation as a "major win," legal experts say that the SEC's move does not necessarily mean that ether is not a security.

The SEC's investigation into Consensys was launched in March 2023 to examine whether the company's sale of ether constituted a securities transaction. The investigation was part of a broader effort by the SEC to regulate the cryptocurrency market and ensure compliance with securities laws. However, the SEC's decision to close the investigation does not provide clear guidance on the legal status of ether.

Legal experts say that the SEC's move could be seen as a sign that the agency is not prioritizing enforcement actions against companies involved in the sale of ether. However, it is also possible that the SEC has decided to focus on other areas of the cryptocurrency market, such as decentralized finance (DeFi) and non-fungible tokens (NFTs).

Consensys has welcomed the closure of the investigation, saying that it is a "major win" for the company and the Ethereum ecosystem. However, the company still plans to pursue its lawsuit against the SEC, which was filed in April over the agency's approach to regulating Ethereum.

The legal status of ether remains unclear, and the SEC's decision to close its investigation into Consensys does not provide a definitive answer. While some legal experts say that the closure of the investigation suggests that ether is not a security, others argue that the SEC's move could be seen as a tactical decision to avoid litigation risk.

The SEC's approach to regulating the cryptocurrency market remains a subject of debate, and the agency's decision to close its investigation into Consensys is likely to be seen as a significant development in the ongoing legal battle over the status of cryptocurrencies. As the cryptocurrency market continues to evolve, it is likely that the legal status of ether and other cryptocurrencies will remain a topic of discussion and debate.