The U.S. Securities and Exchange Commission issued subpoenas to firms that dealt with the Ethereum Foundation, reports Fortune, citing people familiar with the matter. 

Individuals from companies receiving the subpoenas said the inquiries were highly specific to the Ethereum Foundation. In addition, some firms received subpoenas recently, while others obtained theirs after Ethereum switched to a proof-of-stake (PoS) consensus system in September 2022 in a transition dubbed "The Merge."

Fortune reports that the regulator's investigations also required firms to provide documents and financial records related to Ethereum Foundation interactions. The Ethereum Foundation is a non-profit based in Switzerland that develops and manages the Ethereum blockchain. 

The Ethereum Foundation had noted a state authority contacted it, The Block reported earlier today. 

The SEC's move raises questions about whether it is part of a broader push to classify ether as a security, possibly dashing hopes that the regulator will approve spot ether exchange-traded funds (ETFs) in the coming months. The regulator has delayed the decision on the approval of several spot ether ETFs, informing Van Eck on Wednesday that it is the latest contender whose verdict has been postponed until May 23. Though industry leaders were initially optimistic of a May 23 spot ether ETF approval, some have pinned the odds of that happening down to just 28%. 

Shortly after The Merge, SEC chair Gary Gensler stated that tokens in a PoS consensus system could be considered securities since investors rely on the efforts of others to make a profit.