According to reports, the US Securities and Exchange Commission is currently pursuing legal action in order to categorize Ethereum as a financial instrument. Indeed, Fortune According to reports, a number of US-based companies have been subpoenaed in connection with an investigation that is ongoing into ETH.
It is a further blow to the hope that was held by the entire industry for the SEC’s approval of a Spot Ethereum ETF. In January, the agency approved 11 Bitcoin Spot ETFs. However, this legal action seems to have undermined Ethereum’s prospects.
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SEC seeks classification of Ethereum as a security
Digital asset markets have performed well ever since 2024. Bitcoin is the leader in gains despite the recent price correction. This asset has reached an all-time record high of $73,000 in this month due to increased institutional investments.
It appears that ETH will not benefit in the same way. Fortune reported that the SEC has launched a campaign in order to label Ethereum as a security. The agency issued subpoenas for US firms to provide evidence as it investigates the asset.
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The SEC has been seeking to find out how much money the SEC wants. “documents and financial records that they may have regarding their dealings with the Etheruem Foundation,” A non-profit organization based in Switzerland that is supporting Etheruem. The report also notes that investigations began into the Ethereum foundation as early as September 2022, when the organization transitioned from a proof-of-stake Governance model.
Another report was noted source In the past few weeks, I received a summons. Initial investigation reported by CoinDesk But hasn’t received any confirmation from Ethereum Foundation. The SEC stated in a Fortune comment that it had not received confirmation from the Ethereum Foundation. “does not comment on the existence or nonexistence of possible investigation.”
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Source: watcher.guru