the regulatory status of cryptocurrencies, including Ethereum, is a topic of ongoing debate and discussion among regulatory bodies such as the United States Securities and Exchange Commission (SEC). The SEC has been actively involved in regulating the cryptocurrency market and has provided guidance on how existing securities laws apply to digital assets.

In the past, the SEC has clarified that not all cryptocurrencies are considered securities. The determination of whether a particular cryptocurrency qualifies as a security depends on the specific facts and circumstances surrounding its issuance and whether it meets the criteria laid out in the Howey Test, which assesses whether an investment involves an expectation of profits from the efforts of others.

While Ethereum was initially launched through an initial coin offering (ICO), the SEC has not explicitly classified Ethereum as a security. Instead, they have stated that cryptocurrencies like Bitcoin and Ethereum are not considered securities, but the ICOs conducted on their platforms may involve the sale of securities.

It’s important to note that regulatory actions and perspectives can evolve over time. If there have been recent developments regarding the SEC’s subpoenas or a potential “legal campaign” to classify Ethereum as a security, it would be best to refer to reliable news sources or official statements from the SEC for the most up-to-date and accurate information on the matter.

SEC Subpoenas Crypto Firms in Relation to Ethereum Foundation, Reports Suggest

According to an article by Leo Schwartz and Jeff Roberts published in Fortune, several prominent cryptocurrency businesses have reportedly received subpoenas from the United States Securities and Exchange Commission (SEC) in recent weeks. The subpoenas were issued to gather records related to the Ethereum Foundation, a non-profit organization that supports the Ethereum ecosystem. The purpose of these subpoenas is part of what has been described as a “legal campaign” aimed at formally classifying Ethereum as a security. It is important to consult reliable news sources or official statements from the SEC for the most accurate and up-to-date information on this matter.

 

Claims from an anonymous employee at one of the subpoenaed companies suggest that the investigation into Ethereum began shortly after the platform shifted to its new proof-of-stake model in September 2022, as noted in the article.

CoinDesk also published a report stating that the Ethereum Foundation is under investigation by a “state authority” following a GitHub commit made by the company on February 26, 2024. The news of the SEC’s investigation emerged shortly after this report was published.

Furthermore, on the same day as the mentioned GitHub commit, the Ethereum Foundation, based in Switzerland, removed its canary warrant. The warrant previously indicated that the foundation had never experienced a private government investigation.

For the most recent and accurate updates on these investigations, it is recommended to refer to reliable news sources or official statements from the SEC and the Ethereum Foundation.

SEC’s Stance on Ethereum as a Security Impedes Prospects of Ethereum ETF

Up until my knowledge cutoff in September 2021, the United States Securities and Exchange Commission (SEC) had not made a definitive statement regarding the approval of an Ethereum ETF. However, it is worth noting that the regulatory landscape can change over time, and new developments may have occurred since then.

It’s important to consult reliable news sources or official statements from the SEC for the most up-to-date information on the SEC’s position regarding an Ethereum ETF or any potential developments regarding its approval.

 

The Bloomberg analysts went on to cite a lack of engagement from the SEC with potential issuers as one of the reasons for the denial, calling it the “exact opposite” of how the commission proceeded in the leadup to spot Bitcoin ETF approval.

U.S. House Committee on Financial Services Criticizes Gensler’s Actions

SEC Chair Gary Gensler has recently come under heightened scrutiny for his leadership of the federal agency. The U.S. House Committee on Financial Services conducted a hearing on Wednesday to discuss potential reforms within the commission.

During the hearing, Congressman French Hill (R-LA) made allegations that under Gensler’s guidance, the SEC had “blatantly and repeatedly” exceeded its statutory authority.

By ailf

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