Cryptocurrency Market News: SEC Wants To Define Ether as A Security, Bitcoin Rebounds
The crypto market shook off some of the jitters from last week, creeping back up in the green on Monday. Bitcoin rebounded past $70,000, and gains were seen across crypto tokens and crypto-related stocks.
After hitting a series of all-time highs in the previous weeks, spot bitcoin exchange-traded fund (ETF) inflows have dried up and the bitcoin price posted its largest single-day drop in more than two years. Meanwhile, ether found itself in focus after reports that the Securities and Exchange Commission (SEC) is looking to classify it as a security.
Despite that negative news, global investment firm BlackRock disclosed a new tokenized fund on the Ethereum network.
The SEC is pursuing an investigation to classify ether (ETH), the native cryptocurrency of the Ethereum network, as a security, Fortune reported.Companies that have received subpoenas related to this probe have said that the SEC is demanding documents and financial records concerning their dealings with the Ethereum Foundation, which is the Switzerland-based non-profit organization overseeing the blockchain's governance and development.
The investigation appears to have gained traction following the completion of Ethereum's transition to a proof-of-stake model in September 2022. The SEC perceives this network change to resemble an investment contract, which potentially could qualify ether as a security under the agency's purview.
Notably, this development may point to a derailment of the crypto industry's hopes for SEC approval of spot ether ETFs in the near future. That said, a number of spot ether ETF applicants have indicated they would be willing to accept the designation of the crypto asset as a security, according to a report in Forbes.
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