Emboldened Crypto Market Participants Shrug Off SEC's Probe of Ethereum.

UNITED States. Securities & Exchange Commission; CRYPTOCURRENCIES; EXCHANGE traded funds; NON-fungible tokens; EQUITY stake; INVESTORS; SECURITIES fraud; PRICE regulation; CRYPTOCURRENCY exchanges

Despite the US Securities and Exchange Commission's (SEC) investigation into the Ethereum Foundation, the digital-asset world remains unaffected. The probe raises concerns about whether Ether, the token used on the Ethereum blockchain, is a security. However, recent legal setbacks suffered by the SEC have undermined Chairman Gary Gensler's enforcement crackdown, and Ether has actually gained about 5% since the investigation was announced. The investigation's impact may affect the approval of exchange-traded funds investing in Ether and put pressure on exchanges to delist Ether if it is deemed a security. Additionally, decentralized exchanges and nonfungible tokens (NFTs) minted on the Ethereum network could also be impacted. However, the entire ecosystem may only experience a short-term hit due to the uncertainty created by the investigation. Competing blockchains like Solana could benefit if Ether is classified as a security. Ultimately, the outcome of the investigation may be influenced by the upcoming US elections and could be subject to litigation. [Extracted from the article]

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