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SEC Probes Ethereum Status As Bloomberg Slashes Odds Of Ethereum ETF Approval In May

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The SEC is probing the status of Ethereum.
The SEC is probing the status of Ethereum.

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The US Securities and Exchange Commission (SEC) has launched a probe into Ethereum to determine whether the largest altcoin is a security, Fortune reported.

The SEC sent subpoenas to companies seeking documents and financial records relating to their dealings with the Ethereum Foundation, the story said, citing companies that have received SEC subpoenas.

The Ethereum Foundation, a non-profit organization that oversees the governance and development of the Ethereum blockchain, confirmed it was under investigation in an update on its GitHub repository.

The investigation started after the Ethereum blockchain switched from a proof-of-work consensus to proof-of-stake in 2022, Fortune said.

Odds For SEC Approval Of A Spot Ethereum ETF Plunge

The SEC probe into Ethereum comes as BlackRock, Fidelity, and six others await the regulator’s decision on their applications for a spot Ethereum ETF (exchange-traded fund).

The SEC approved spot Bitcoin ETFs in January, but US legislators have expressed concern over the approval of additional crypto ETFs.

Bloomberg ETF analyst Eric Balchunas says there is now only a 25% chance the SEC greenlights a spot ETH ETF by a May deadline as he slashed the odds from a 35% possibility on Mar. 11

On March 20, the SEC delayed its decision for the VanEck spot Ethereum ETF, pushing the decision date to May 23.

Coinbase chief legal officer Paul Grewal came to Ether’s defense, arguing that it is is a commodity and that the SEC has no grounds on which to deny the approval of ETH ETFS.

Grewal also posted an earlier video of SEC Chair Gary Gensler testifying before Congress and saying that Ethereum is not a security.

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