The US Securities and Exchange Commission (SEC) has initiated an investigation into Ethereum:

Subpoenas have been issued by the SEC to companies requesting documents and financial records related to their interactions with the Ethereum Foundation, according to sources familiar with the matter.

The Ethereum Foundation, a non-profit entity responsible for overseeing the governance and evolution of the Ethereum blockchain, acknowledged being under scrutiny in an update on its GitHub repository.

The investigation was instigated following the transition of the Ethereum blockchain from a proof-of-work consensus to proof-of-stake in 2022, according to Fortune.

The likelihood of SEC approval for a spot #Ethereum ETF has decreased significantly, as BlackRock, Fidelity, and six other entities await the regulator's decision on their spot Ethereum ETF applications.

Although spot Bitcoin ETFs were endorsed by the SEC in January, concerns have been raised by US lawmakers regarding additional crypto ETF approvals.

Bloomberg ETF analyst Eric Balchunas has reduced the odds of the SEC approving a spot ETH ETF by the May deadline from 35% to 25%, citing a timeline comparison chart.

On March 20, the SEC postponed its ruling on the VanEck spot Ethereum ETF, rescheduling the decision date to May 23.

Coinbase's chief legal officer, Paul Grewal, defended Ethereum, asserting that it is a commodity and urging the SEC not to reject ETH ETF approvals.

Grewal referenced a video of SEC Chair Gary Gensler affirming before Congress that Ethereum is not classified as a security.

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