The U.S. Securities and Exchange Commission (SEC) is ceasing its investigation into whether Ethereum (ETH) is a security. Ethereum developer Consensys has now announced this in a new Twitter post.

"We are pleased to announce a major victory today for Ethereum developers, technology providers and industry participants: The Enforcement Division of the SEC has informed us that it has closed its investigation into Ethereum 2.0," Consensys writes.

"This means that the SEC will not sue on the grounds that the sale of ETH is a securities transaction," the statement continued. For years, it has been disputed whether Ethereum should be classified as a commodity or a security.

Meanwhile, the second-largest cryptocurrency is trading at 3542 USD, representing an ETH price increase of 2.88 percent in the past 24 hours.

In April, Consensys went on the attack, suing the SEC in a Texas court. The Ethereum developer argued that the SEC had overstepped its jurisdiction with its actions against the crypto sector.

Following the approval of the Ether spot ETF, Consensys also pointed out to the SEC in a letter that the index funds assumed that ETH would be classified as a commodity. Therefore, the SEC should explain how this would affect the investigation.

However, the SEC's official wording states that notification of the conclusion of the investigation "should in no way be taken as an indication that the party has been exonerated [...] or that no action will be taken."

However, Consensys attorney Laura Brookover is optimistic, stating, "After more than a year, the Ethereum investigation is finally closing without anyone being charged."