Ethereum (ETH) is experiencing a surprisingly significant bull move amid an investigation by the SEC. At the time of writing, Ethereum has jumped to $3,543.54, an increase of 13.2% in the last 24 hours, according to CoinGecko data.
This move comes just 24 hours after news emerged that the Ethereum Foundation was under investigation by an unnamed government agency. This investigation only resulted in some minor corrections on the Foundation’s website, but another report from Fortune Crypto stated that the US SEC has issued summonses to different businesses that are thought to be dealing with Ethereum. As the report highlights, the sole purpose of the market regulator is to classify Ethereum as a security. If it manages to achieve this goal, the chances of it gaining approval for its spot Ethereum ETF product are low. For some issuers, such as VanEck, the deadline is set at May 23. This negative news has not yet been fully digested within the Ethereum community and its price has remained resilient, with ETH reversing the trend.
Ethereum Gains Support from Industry
Despite the controversy surrounding the Ethereum protocol and securities classification, as Koinfinans.com reported, many industry experts, such as Solana co-founder Anatoly Yakovenko and Coinbase’s chief legal officer Paul Grewal, have praised Ethereum.
Grewal believes that Ethereum is in a critical position in the entire evolution of the digital currency ecosystem. An investigation into Ethereum could cause a major change in the current situation, which could disrupt development efforts on the protocol; It could impact investors’ optimism about the robust decentralized finance (DeFi) infrastructure that has been built on Ethereum so far. While industry observers patiently await the outcome of investigations and the spot Ethereum ETF decision, the current growth outlook suggests investors may care less in the long run.
