SEC reignites probe into Ethereum aiming to classify it as a security

Reports surfaced on March 20th the US Securities and Exchange Commission (SEC) has intensified its scrutiny of Ethereum, signaling a potential move to categorize it as a security.

Following a probe that started in September 2022, the SEC has issued subpoenas to firms associated with the Ethereum Foundation, indicating a renewed focus on the regulatory status of Ethereum. This development hinders the possibility of an ETH spot ETF approval and may even lead to Ethereum being delisted from US Exchanges.

Although the odds of Ethereum actually being classified as a security are low at this point. As James Sayffart of Bloomberg Intelligence writes "the SEC has implicitly accepted Ethereum as a commodity multiple times in the past 5 years". sources: Bloomberg, The Block, Fortune