The US Securities and Exchange Commission has acknowledged Ethereum as an unregistered security for a period of at least one year, as reported by FOX Business. This was highlighted in court filings by Consensys, a company involved in Ethereum software development.
Consensys took legal action against the SEC in Texas, claiming that the regulatory body's oversight of the cryptocurrency market was excessive. The lawsuit sought to have Ethereum classified as not a security, challenging the SEC's Wells Notice issued to Consensys and an investigation conducted against the Ethereum Foundation.
According to court documents, the SEC's Enforcement Division has been examining Ethereum as an unregistered security since March of the previous year, focusing on "Ethereum 2.0." Despite previous statements from SEC officials regarding Ethereum's status as a security, the Division of Enforcement head approved a formal investigation into Ethereum's classification on March 28, 2023.
This investigation has implications for the possibility of spot Ethereum ETFs being denied by the SEC in May, as market experts warn of the challenges posed by these ongoing inquiries.
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