SEC Wages Effort To Classify Ethereum As Security

March 20, 2024 3:32 pm Comments

The SEC has once again barged their way into the crypto sphere by issuing several companies subpoenas in a desperate move to label  Ethereum as a security.

In a breaking report by Fortune, an investigation by the SEC into the Swiss non-profit the Ethereum Foundation may give the SEC the ability to define Ethereum as a security.

According to insiders familiar with the investigation, the SEC launched a campaign attempting to label ETH as security in 2022.

As the investigation has been ongoing, SEC Chair Gary Gesnler has avoided labeling ETH as a security, but in 2018, Gesnler stated Bitcoin and Ethereum were not securities.

Per Cointelegraph:

The United States Securities and Exchange Commission (SEC) reportedly issued several subpoenas to companies related to attempts to label Ether as a security.

According to a March 20 Fortune report, an investigation by the SEC into the Ethereum Foundation could give the commission regulatory coverage to define ETH as a security. The foundation suggested via GitHub that it may be under investigation “from a state authority.”

Several U.S.-based companies reportedly received subpoenas from the SEC requesting they provide documents and financial records related to dealings with the Ethereum Foundation. According to people familiar with the matter, the commission launched a campaign to classify ETH as a security following the blockchain’s tradition from proof-of-work to proof-of-stake in 2022.

While in office, SEC Chair Gary Gensler has refused to answer direct questions about whether ETH qualifies as a security under the commission’s purview, despite claiming Bitcoin, Ether and others were “not securities” in 2018. The commission has approved exchange-traded funds (ETFs) tied to Ether futures but has yet to decide whether to approve or deny spot ETH ETFs — many experts expect a decision by May.

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