SEC Launches Effort to Classify Ethereum as Protection

The United States Securities and Exchange Commission has initiated a vigorous legal effort to categorize Ethereum as a securities

The US Securities and Exchange Commission is exploring legal action to categorize Ethereum as a security. Fortune claims that many US corporations were subpoenaed in connection with an ongoing probe into ETH.

The development undercuts the industry’s hopes that the commission will approve a Spot Ethereum ETF this year. The government had approved 11 Spot Bitcoin ETFs in January, but the new legal action looks to jeopardize Ethereum’s chances.

Agenda to Seeks Safety Classification for Ethereum

Since the beginning of 2024, the digital asset market has done exceptionally well. Although the price has corrected this week, Bitcoin has led the way regarding overall gains. This month, substantial institutional investment drove the asset to a new all-time high of $73,000.

According to the source, the Commission is looking for “documents and financial records that they may have regarding their dealings with the Etheruem Foundation,” a Swiss-based non-profit organization that promotes Etheruem.

Furthermore, the report says inquiries into the Ethereum Foundation began in September 2022, when the organization switched to a proof-of-stake governance style.