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- SEC began investigtions into Ethereum as a security in March 2023.
- The regulator sent subpoenas and a Wells Notice to Consensys, a Ethereum development firm.
The US Securities and Exchange Commission (SEC) has reportedly viewed Ethereum as an unregistered security for at least a year, FOX Business reportedĀ on Monday.
According to the publication, this consideration about ETH comes to light following court filings by Ethereum software developer company Consensys.
The company, which sued the SEC last week amid investigations around the cryptocurrency, maintains that Ethereum is not a security.
Consensys sued the SEC
The Consensys teamās lawsuit filed in Texas accused the Gary Gensler led SEC of āoverreachā in its regulation of the crypto space. The lawsuit also asked the court to declare ETH not a security.
SECās Wells Notice to Consensys and an investigation against the Ethereum Foundation have been key events to unfold in the past few weeks.
FOX Businessā report states that documents show the SECās Enforcement Division has looked at Ethereum as an unregistered security since March last year. Per the documents, the investigation centers on the so-called āEthereum 2.0.ā
The SEC believes that there might have been securities āoffers and salesā involving Ethereum since 2018.
Interestingly, this is the same year that SECās then-Director of Corporation Finance Bill Hinman said Ethereum was a security. Former SEC Chair Jay Clayton also gave guidance to that effect, while the Commodity Futures Trading Commission has deemed ETH to be a commodity.
But per the new court documents, SECās Division of Enforcement head Gurbir Grewal gave the nod to a formal investigation into Ethereumās status on March 28, 2023.
The order authorised enforcement staff to probe and issue subpoenas to entities and individuals deemed to have been involved in the buying and selling of ETH.
These investigations have formed one part of the hurdle market experts say could see the SEC deny spot Ethereum ETFs in May.