Through GitHub, the Ethereum Foundation hinted at being the subject of an investigation by a "state authority."
Reports have surfaced indicating that the United States Securities and Exchange Commission (SEC) has issued subpoenas to various US-based companies, asking them to provide documents and financial records concerning their interactions with the foundation.
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This investigation is seen as part of an effort to potentially classify Ether (ETH) as a security, a decision that hinges on its transition from Proof-of-Work to Proof-of-Stake in 2022.
Such crypto classification has long stirred discussions within the community, especially since Gary Gensler himself, prior to becoming chair of the SEC, agreed that "three-quarters of <the crypto> market is probably not securities."
The SEC has also yet to decide on the approval of ETH exchange-traded funds (ETFs). Analysts doubt the decision will be reached in May, as previously predicted, due to a lack of engagement between the commission and issuers.
As the crypto community awaits further updates, the outcome of this probe could redefine the regulatory landscape for Ethereum and other digital assets.
