According to reports, the U.S. Securities and Exchange Commission (SEC) seems to be investigating the Ethereum Foundation (EF), raising questions over whether Ether (ETH) should be classified as a security. Ethereum Foundation group affiliates may be targeted by SEC issuance of subpoenas, which can influence the acceptance of Ether exchange-traded funds (ETFs).
Industry analysts are reluctant to further developments on Chair Gary Gensler’s previous remarks due to the approach of a united attack on ETH. Coinbase’s legal officer, Paul Grewal, claimed that the SEC’s lack of explanation for denying ETH ETF applications was fundamental and was based on Genslar’s past statements.
Nevertheless, Fox Business correspondent Eleanor Terrett opined that these subpoenas are a probable reason behind the SEC’s silence when cryptocurrency exchange-traded funds are hosted. As a result, Bloomberg analysts came down to a 25% probability of getting a spot Eterbear ETF approved by May from an initial probability of 70%.
However, there are opinions like that of Brian Quintenz, the former Commissioner of CFTC, that the SEC had already acknowledged the lack of security in Ethereum. Yet, Charles Hoskinson, the founder of Cardano, considers the possibility of a shift due to Ethereum changing its mechanism to a proof-of-stake one.
Finally, SEC limitations on immediate decision on spot Ether ETF exist as hereafter dates are set in May or even later. Both BlackRock and Fidelity, as gamblers, are waiting in limbo as the chances of Ether getting its regulatory status are explored and debated.
Also Read: SEC Delays Decision on VanEck’s Ether ETF Application
