Fortune: Ethereum under close scrutiny by SEC, attempting to classify ETH as a security
According to Fortune, the U.S. Securities and Exchange Commission (SEC) is conducting a thorough investigation into Ethereum. This is not just a routine check. The SEC may be considering categorizing Ether as a security, a decision that could have a significant impact on the dream of launching an Ether ETF.
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Switching to PoS Raises Securities Concerns
According to reports, the core of this investigation is due to Ethereum's switch to "Proof of Stake" (PoS). It is not just a technical upgrade but may also redefine the nature of Ether under the law. The SEC sees this as a prime opportunity to consider Ether as a "security" through its inquiry.
Lack of Clear Legal Definition for ETH
The legal status of Ether has always been uncertain, existing in a regulatory gray area. The SEC's stance on Ether has been wavering, with the current chairman's approach significantly differing from past positions, causing unease within the cryptocurrency community.
Implications of Ether Being Deemed a Security
If Ether is classified as a security, the implications could be far-reaching, casting uncertainty over the prospects of an Ether ETF. As the SEC's investigation unfolds, people are eagerly awaiting the outcome, which could redefine the boundaries between securities and cryptocurrencies, signifying a pivotal chapter for the development of Ethereum and the entire cryptocurrency ETF space.
Meanwhile, there are reports that the SEC has postponed VanEck's application for an Ether spot ETF.
