The US Securities and Exchange Commission (SEC) has reportedly launched a strong legal campaign to classify Ethereum as a security, according to Fortune.
This news marks a significant setback for the crypto industry, which had been hopeful that the SEC would greenlight applications for an Ethereum ETF, especially after the approval of several Bitcoin ETFs earlier this year.
The SEC's investigation into Ethereum includes requiring companies to provide any documents and financial records related to their interactions with the Ethereum Foundation. The non-profit ETH Foundation is responsible for overseeing the management and development of the Ethereum blockchain.
Sources from companies that have recently received subpoena requests reveal that the SEC's investigation into the Switzerland-based Ethereum Foundation began shortly after the blockchain switched to a new governance model known as “proof-of-stake” in September 2022. The subpoenas are narrowly defined and focus on the Ethereum Foundation.
“The SEC does not comment on the existence or absence of a potential investigation,” the SEC said in response to Fortune's request for comment.
*This is not investment advice.
