The SEC’s reported investigation into the Ethereum Foundation could explain why the regulator hasn’t been forthcoming with prospective spot Ether ETF issuers, some suggest.
The reported probe into the Ethereum Foundation could be part of a “coordinated attack” on Ether (ETH) and may be used as a reason to deny or delay spot Ether exchange-traded funds (ETFs), according to industry pundits.
On March 20, Fortune reported that the United States Securities and Exchange Commission issued several subpoenas to companies that have worked with the Ethereum Foundation. Sources familiar with the matter said the commission had launched a campaign to classify ETH as a security in 2022.
“The SEC has no good reason to deny the ETH ETP applications,” argued Coinbase chief legal officer Paul Grewal in response to the news, noting that SEC Chair Gary Gensler once testified before Congress that Ether is not a security.
