As reported by Cointelegraph, the U.S. Securities and Exchange Commission attempted to classify Ethereum as a security and issued several subpoenas to related companies.
The U.S. Securities and Exchange Commission’s investigation into the Ethereum Foundation could give the commission regulatory authority to define Ethereum as a security, Fortune reported on March 20. The foundation said via GitHub that it may be under investigation by "state authorities."
Several U.S. companies have reportedly received subpoenas from the U.S. Securities and Exchange Commission demanding documents and financial records related to transactions with the Ethereum Foundation. The committee launched a campaign to classify ETH as a security in 2022 after the blockchain transitioned from proof-of-work to proof-of-stake, according to people familiar with the matter.
During his tenure, SEC Chairman Gary Gensler has refused to answer direct questions about whether ETH is a security within the commission’s purview, despite claiming that Bitcoin, Ethereum and other cryptocurrencies “are not securities” in 2018. The committee has approved an exchange-traded fund (ETF) tied to Ethereum futures, but has yet to decide whether to approve or reject a spot Ethereum ETF — a decision that many experts expect to come in May.
