According to a report by Fortune magazine, the Securities and Exchange Commission (SEC) of the United States is conducting an investigation into American cryptocurrency companies. Based on statements from US companies that have received subpoenas related to the investigation, the SEC is actively pursuing legal action aimed at classifying Ether as a security. This news further dampens the industry’s hopes for the regulatory agency to approve applications for Ethereum futures ETFs from BlackRock and other companies.
The report indicates that the SEC began investigating the Ethereum Foundation around September 2022, shortly after the Ethereum network transitioned to the Proof of Stake (PoS) consensus mechanism. Additionally, sources have pointed out that the Ethereum Foundation received subpoenas in the past few weeks, which may explain the recent removal of the canary image by the foundation (although the claim of receiving subpoenas seems to contradict the foundation’s assertion of “voluntariness”).
Although the release of this news resulted in a decline in ETH prices, many industry professionals believe that while it is not good news, it is not necessarily a significant negative factor either. Moreover, the SEC’s determination that Ether is a security does not appear to be a novel development. The market seems to have recognized this as well, as the price of ETH has stopped falling and is currently rebounding.
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