Breaking: Ethereum Foundation Faces Investigation by Unnamed ‘State Authority’ – Will ETH Get Banned?
The Ethereum Foundation, the Switzerland-based non-profit organization that created and continues to develop the Ethereum blockchain, faces investigation by an unnamed “state authority”, the group’s GitHub repository says.
As per a GitHub commit submitted on the 26th of February, “we have received a voluntary enquiry from a state authority that included a requirement for confidentiality.”
The Ethereum Foundation – the Swiss non-profit organization at the heart of the Ethereum ecosystem – is under investigation by an unnamed "state authority," according to the group's website's GitHub repository.
An attorney familiar with the situation said a Swiss regulator may…
— Crypto News Updates (@CryptoNewsUpd8s) March 20, 2024
But traders and crypto media outlets only began to pick up on the news on Wednesday the 20th of March.
And as the news began to circulate, the Ether price has come under pressure.
ETH was last trading back around $3,200, having traded as high as $3,400 prior to the Ethereum Foundation investigation news emerging.
One attorney cited by various crypto news outlets suggested that the Swiss regulator may be behind the inquiry.
Moreover, this regulator may be working alongside the US Securities and Exchange Commission (SEC).
The SEC is currently looking at multiple applications from major Wall Street firms to launch spot Ether ETFs.
Most of the key deadline dates for the SEC to issue a decision are coming up in May.
But, in recent weeks, analysts and the market have become pessimistic about approval, despite approving Ether futures ETF last year.
Bloomberg ETF analyst James Seyffart recently predicted that Ether ETF applications will ultimately be denied in May.
My cautiously optimistic attitude for ETH ETFs has changed from
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