An undisclosed government agency is reportedly conducting an investigation into the Ethereum Foundation, a non-profit entity deeply integrated into the Ethereum ecosystem. Information regarding this potential investigation surfaced on GitHub on February 26, although it only gained traction within the cryptocurrency community weeks later.
The original comment on GitHub indicating the investigation was subsequently deleted, evident from the revision history. Presently, the exact scope and focus of the inquiry remain undisclosed. The Ethereum Foundation has refrained from issuing any official statements regarding the matter.
Previously, the Ethereum Foundation’s website contained a statement asserting that they had never been subject to nondisclosure requirements pertaining to their interactions with governmental agencies worldwide. However, this statement was removed from the website on February 26, coinciding with the GitHub activity.
Speculation within the cryptocurrency community suggests that the investigation could be linked to the anticipated launch of Ethereum spot Exchange-Traded Funds (ETFs). Analysts, such as James Seyffart from Bloomberg, have indicated a dwindling likelihood of Ethereum ETF approval by the U.S. Securities and Exchange Commission (SEC) in May. Seyffart attributes this diminished probability to the perceived lack of constructive engagement between the SEC and potential Ethereum ETF issuers, which may result in rejected applications during this application cycle.
Seyffart emphasizes the necessity for more proactive dialogue between the SEC and Ethereum ETF issuers to facilitate a smoother regulatory process.