Fortune Magazine: U.S. SEC Initiates Legal Action to Classify Ethereum as a Security

ChainCatcher news, according to a report by Fortune magazine, U.S. companies that have received subpoenas related to the investigation claim that the U.S. Securities and Exchange Commission (SEC) is initiating legal action to classify Ethereum as a security. The SEC's investigation into Ethereum involves requesting companies to provide all documents and financial records related to their dealings with the Ethereum Foundation.

According to a source from one of the companies that recently received a subpoena, the SEC's investigation into the Switzerland-based Ethereum Foundation began shortly after the blockchain transitioned to a new governance model called "proof of stake" in September 2022. The SEC stated in response to Fortune's request for comment: "The SEC does not comment on the existence of a possible investigation."