SEC has regarded Ethereum as security for at least a year: report

• The SEC launched an investigation into Ethereum as a security in March 2023.
• The regulator sent summons and a Wells notice to Ethereum development firm ConsenSys.

The US Securities and Exchange Commission (SEC) has reportedly observed Ethereum As an unregistered security for at least one year, Fox Business informed of on Monday,

According to the publication, this idea about ETH comes after a court filing by Ethereum software developer company ConsenSys.

company, which Filed a lawsuit against the SEC last week Amidst the scrutiny about cryptocurrencies, it has been said that Ethereum is not a security.

ConsenSys sued the SEC

The ConsenSys team’s lawsuit, filed in Texas, accused the Gary Gensler-led SEC of “overreach” in regulation of the crypto space. The lawsuit also requested the court to declare ETH not a security.

The SEC’s Wells Notice to ConsenSys and the investigation against the Ethereum Foundation have been major events to unfold over the past few weeks.

Fox Business reports that documents show that the SEC’s enforcement division has observed Ethereum as an unregistered security since March last year. According to the documents, the investigation focuses on so-called “Ethereum 2.0.”

The SEC believes that there may be “offers and sales” of Ethereum-linked securities after 2018.

Interestingly, this is the same year that Bill Hinman, then Director of Corporate Finance for the SEC, said that Ethereum is a security. Former SEC Chairman Jay Clayton also provided guidance to that effect, while the Commodity Futures Trading Commission considers ETH a commodity.

But according to new court documents, Gurbir Grewal, head of the SEC’s enforcement division, gave permission for a formal investigation into the status of Ethereum on March 28, 2023.

The order authorized enforcement staff to investigate and issue subpoenas to entities and individuals believed to be involved in the buying and selling of ETH.

These investigations have created a part of the hurdle, with market experts saying the SEC could reject an Ethereum ETF in May.