An unknown government agency has launched an investigation into the Swiss non-profit organization Ethereum Foundation. This became known from an entry in the GitHub repository dated February 26, 2024, CoinDesk reports.
According to GitHub, the site's source code was changed after receiving a confidential request from a government agency. The reasons and scope of the investigation have not been disclosed.
Previously, the Ethereum Foundation website contained the following information:
“The Ethereum Foundation has never contacted any agency anywhere in the world in a manner that required confidentiality of that contact. The Ethereum Foundation will publicly disclose any requests from government agencies that are outside the scope of normal business operations.”
At the time of publication, the post had been removed from the site. According to one version, Swiss regulators, in cooperation with the US Securities and Exchange Commission (SEC), could send a request to the Ethereum Foundation to provide documents.
According to Fortune, a number of unnamed companies have received subpoenas regarding the classification of the Ethereum cryptocurrency as a security. Commenting on the situation, one of the lawyers familiar with the circumstances of the case said:
“This request is part of a broader review that has come under many international organizations. The Ethereum Foundation is not the only organization they are requesting information from."
Adviser to venture capital firm a16z Brian Quintenz said that if the regulator considered Ethereum a security, it would not approve the listing of futures ETFs based on this asset.
Amid news of a possible investigation, Ethereum fell below $3,100. However, then the asset rate quickly recovered. At the time of publication, the cryptocurrency is trading above $3,500, according to TradingView. The growth was 9.5% since the fall.
Note that the potential investigation coincided with important changes in the Ethereum ecosystem. In March 2024, the developers released a major update to Dencun, designed to reduce transaction costs for users of L2 protocols.
In addition, several investment companies have applied to launch spot Ethereum ETFs in the United States. According to the latest data, the regulator has postponed a decision on them until May 2024.
Coinbase chief legal officer Paul Grewal noted that Ethereum is a commodity and many Americans have invested in the asset. Therefore, the regulator has no reason to reject applications for a spot Ethereum-ETF
Notably, Bloomberg analysts reduced the likelihood of Ethereum-ETF approval in May to 30%. JPMorgan Chase bank experts are also skeptical. They believe that in order to launch this product, it is necessary for the SEC to recognize Ethereum as a commodity.
