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Key Takeaways
- The SEC has initiated an investigation into the Ethereum Foundation, issuing subpoenas to companies associated with the foundation.
- The investigation aims to determine whether Ether should be classified as a security.
- The outcome of the SEC’s probe could have significant implications for Ethereum’s regulatory status.
Through GitHub, the Ethereum Foundation hinted at being the subject of an investigation by a “state authority.”
Reports have surfaced indicating that the United States Securities and Exchange Commission (SEC) has issued subpoenas to various US-based companies, asking them to provide documents and financial records concerning their interactions with the foundation.
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This investigation is seen as part of an effort to potentially classify Ether (ETH) as a security, a decision that hinges on its transition from Proof-of-Work to Proof-of-Stake in 2022.
Such crypto classification has long stirred discussions within the community, especially since Gary Gensler himself, prior to becoming chair of the SEC, agreed that “three-quarters of <the crypto> market is probably not securities.”
The SEC has also yet to decide on the approval of ETH exchange-traded funds (ETFs). Analysts doubt the decision will be reached in May, as previously predicted, due to a lack of engagement between the commission and issuers.
As the crypto community awaits further updates, the outcome of this probe could redefine the regulatory landscape for Ethereum and other digital assets.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
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