US Securities and Exchange Commission Investigates Ethereum Foundation, Aims to Categorize ETH as a Security
Reports have emerged that the United States Securities and Exchange Commission (SEC) is conducting an investigation into the Ethereum Foundation, dealing a blow to hopes of a spot Ethereum exchange-traded fund (ETF). The SEC is reportedly looking to classify Ethereum’s native coin, ETH, as a security. The investigation began shortly after Ethereum’s switch from Proof of Work to Proof of Stake in September 2022. The SEC has sent several subpoenas to the Swiss-based foundation, raising concerns about the approval of an Ether ETF by the SEC’s expected May 23 deadline. Analysts have expressed pessimism about the approval, citing a lack of communication between the SEC and applicants, similar to the situation with spot Bitcoin approval earlier this year. Following the news, Ethereum’s price dropped by over 8% before recovering slightly. The token has experienced a 16% decline this week due to a broader market downturn.
