Connect with us

Hi, what are you looking for?

Economy

SEC Probing Crypto Firms to Classify Ethereum as a Security: Fortune Reports

The United States Securities and Exchange Commission (SEC) is reportedly serving subpoenas to several U.S. businesses as part of a “legal campaign” to formally classify Ethereum as a security, a Tuesday article from Fortune reveals.

Crypto Firms Subpoenaed By SEC in Connection With Ethereum Foundation


According to the article by Fortune’s Leo Schwartz and Jeff Roberts, three prominent cryptocurrency businesses received subpoenas from the federal agency records about the Ethereum Foundation, a non-profit organization supporting the Ethereum ecosystem, in recent weeks.

Scoop: SEC expands push to make Ethereum a security

Subpoenas sent to 3 well-known crypto companies asking for docs/records about the Ethereum Foundation

Agency is using Merge as a pretext to reclassify. w/@leomschwartz https://t.co/SmxVY4LOjm

— Jeff Roberts (@jeffjohnroberts) March 20, 2024

The aforementioned article notes that an anonymous employee at one of the subpoenaed companies claims the investigation began shortly after Ethereum shifted to its new proof-of-stake model in September 2022.

News of the SEC’s investigation follows shortly after CoinDesk published its own report Tuesday claiming that the foundation was being investigated by a “state authority” following a GitHub commit from the company posted on February 26, 2024.

Similarly, the Switzerland-based foundation took down its canary warrant designating that it had never been hit with a private government investigation on the same day.

Ethereum as a Security Stance by SEC Stalls Ethereum ETF Outlook


The SEC had previously stayed quiet on the position regarding an Ethereum ETF following the approval of several spot Bitcoin ETF applicants in January 2024. 

Just last month, analysts predicted a 50% chance of the token’s SEC approval by May. 

We get it. Our credibility is what is drives our predictions. It isn’t rooted in being btc lover or eth hater (personally we 100% think SEC should approve it) it’s simply wanting to get it right, which we have decent record of. And right now it ain’t looking good. I’m sorry. https://t.co/6GOp5ALm49

— Eric Balchunas (@EricBalchunas) March 20, 2024

However, news that SEC Chair Gary Gensler is leading the charge in hopes of classifying Ethereum as a security has made those odds very unlikely.

In a post to X on Tuesday, Senior ETF analyst for Bloomberg, Eric Balchunas, claimed odds were “not looking good” for the token’s SEC approval, following a 35% approval prediction from last week.

Correspondingly, fellow Bloomberg ETF analyst James Seyffart stated in an X post that the two researchers now believe the federal agency would ultimately reject Ethereum ETFs in May. 

My cautiously optimistic attitude for ETH ETFs has changed from recent months. We now believe these will ultimately be denied May 23rd for this round. The SEC hasn’t engaged with issuers on Ethereum specifics. Exact opposite of #Bitcoin ETFs this fall. https://t.co/TyAzAOrAC5

— James Seyffart (@JSeyff) March 19, 2024

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.

Gensler Put On Blast By U.S. House Committee on Financial Services


SEC Chair Gary Gensler has been facing increased scrutiny for his handling of the federal agency, with the U.S. House Committee on Financial Services holding a hearing on Wednesday to discuss the commission’s potential reform.

During testimony on Wednesday, Congressman French Hill (R-LA) claimed the SEC under Gensler’s direction had “blatantly and repeatedly” overstepped “its statutory authority.”

Cryptonews.com has reached out to Ethereum and the SEC for comment.

The post SEC Probing Crypto Firms to Classify Ethereum as a Security: Fortune Reports appeared first on Cryptonews.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

A recent report from SoSoValue shows significant movements in the Bitcoin exchange-traded funds (ETFs) market, mainly focusing on the outflows observed in Grayscale’s Bitcoin Trust (GBTC)...

Economy

Clearstream, Deutsche Börse’s post-trade business is investing an undisclosed amount in the fintech start-up Digital Vault Services (DVS). Deutsche Börse, one of Europe’s biggest...

Economy

According to a CoinDesk report, OKX, the world’s second-largest cryptocurrency exchange by trading volume, has lost two of its top executives, Tim Byun and...

News

The foreign aid plan Speaker Johnson, R-La., unveiled on Monday night is already facing a growing red wave of opposition from his own colleagues...

News

Russian President Vladimir Putin joined international calls for cool heads in the Middle East as tensions remain high following Iran’s unprecedented attack on Israel...

News

A nonprofit founded and funded by liberal billionaire George Soros funneled a massive eight-figure sum into a prominent liberal super PAC that bankrolls several...

You May Also Like

Financial Advisors

[#item_full_content]

Financial Advisors

[#item_full_content]

Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.