Ethereum (ETH), the world’s second largest cryptocurrency, is coming under particular scrutiny from U.S. federal regulators, the Wall Street Journal (WSJ) reports today, May 1. According to the WSJ, regulators are debating whether or not to classify it as a security under U.S. law.
The WSJ cites source familiar with the matter, who report that regulators have declared that ETH, the world’s largest altcoin, is in a regulatory “gray zone”. A major concern reportedly being raised is how ETH was first distributed – in a sale of ETH starting in July 2014, the Ethereum Foundation raised over 31,000 BTC, (around $18.3 mln at the time) in one of the world’s first Initial Coin Offerings (ICOs).
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