Ethereum’s Future Under the SEC’s Magnifying Glass

The US Securities and Exchange Commission (SEC) has launched an investigation into the Ethereum Foundation, raising concerns about the future of ETFs on Ether. The decision calls into question Ethereum’s regulatory status and could delay the long-awaited approval of ETFs on the second most popular cryptocurrency.

Ethereum in the SEC’s crosshairs

Recently, the SEC issued several subpoenas to companies having collaborated with the Ethereum Foundation, as part of a campaign to determine whether ETH should be classified as a security.

This initiative raises questions about the regulator’s true intentions, especially since Gary Gensler, the SEC Chairman had previously testified before Congress that Ethereum was not a security.

This apparent contradiction has caused concern among industry experts such as Paul Grewal, General Counsel, Coinbase and Travis Kling, Investment Director of Ikigai Asset Management. They question the SEC’s real motives and fear that this investigation is, in fact, a coordinated attack aimed at damaging ETH.

Some observers even go so far as to suggest that the SEC could be using this investigation to justify refusing or postponing the long-awaited approval of Ether-backed ETFs.

Impact on Ether ETF approval

The SEC on Ethereum could have repercussions on the long-awaited approval of Ether ETFs. While several companies, including BlackRock have filed applications to launch these financial products, the experts fear that the current investigation could be used to as a pretext for the regulator to continue to delay or refuse such approvals.

Market players are now eagerly awaiting for the SEC’s decision, which could shape the future of the Ethereum ecosystem and the crypto industry as a whole.