The document states that the Ethereum 2.0 investigation was based on the SEC’s belief that possible offers and sales of certain securities, including but not limited to ETH, had occurred since at least 2018. Documents also show that the SEC may believe that sales of Ethereum even before the 2018 merger were securities.
Even before Gensler’s testimony, the chairman’s reluctance to give a definitive answer on Ethereum’s regulatory status raised alarm bells for the crypto industry. Many speculate that Ethereum’s Merge has made the cryptocurrency more security-like than the original consensus mechanism.