Today in crypto, the United States Securities and Exchange Commission (SEC) is reportedly trying to have Ether (ETH) classified as a security. Apple’s co-founder had a court ruling overturned against YouTube over the use of doctored videos featuring his likeness. Meanwhile, the SEC handed down delay orders on several pending spot Ether exchange-traded fund (ETF) applications.

SEC reportedly trying to classify ETH as a security

According to a March 20 report by Fortune, the SEC has issued several subpoenas to companies related to attempts to label Ether as a security.

The report indicated that the SEC could have grounds to label ETH a security due to its ongoing investigation of the Ethereum Foundation. Meanwhile, the foundation has seemingly acknowledged that it may be under investigation “from a state authority.”

According to the report, the SEC has been investigating Ether’s potential security status since 2022, when the network transition from proof-of-work to proof-of-stake.

As Cointelegraph reported, the SEC’s decision to regulate Ether could put it in direct conflict with the U.S. Commodity Futures Trading Commission. Lawmakers have been working to provide greater clarity on which regulator should have oversight powers over digital assets. However, no bill has been passed yet.

Wozniak wins against YouTube in Bitcoin scam lawsuit

Apple co-founder Steve Wozniak has won the latest round in a court battle against YouTube over the use of doctored videos featuring his likeness used in a Bitcoin scam in 2020. The latest appeals court verdict overruled a lower court judgment that absolved YouTube of any responsibility. 

The latest verdict allows Wozniak to continue the lawsuit against the video streaming platform and potentially paves the way for a change in the federal law protecting video streaming platforms such as YouTube from any liability that comes along with the videos posted on the platform.

The Apple co-founder and 17 others, including Bill Gates, Elon Musk and Michael Dell, filed a lawsuit against YouTube and its parent company, Google, in 2020 after doctored videos promoting a fake scam went viral on YouTube.

The doctored video added additional text and pictures promising free Bitcoin (BTC), and viewers were asked to send Bitcoin to a particular address to get double the money.

SEC postpones decision on pending Ether ETF applications

The SEC has delayed its decision on several spot Ether (ETH) ETF filings from Hashdex and ARK 21Shares.

Analysts and market commentators have grown increasingly bearish on the chances of approval for the eight currently proposed Ether ETFs from BlackRock, Grayscale, Fidelity, Invesco Galaxy, VanEck, Hashdex and Franklin Templeton.

Bloomberg ETF analyst James Seyffart said the chances of an approval by Van Eck’s final deadline on May 23 had grown slimmer in recent weeks, owing largely to a lack of communication between the SEC and fund issuers. 

“We now believe these will ultimately be denied May 23rd for this round,” said Seyffart in a March 19 post on X. 

Source: James Seyffart

Last week, Bloomberg ETF analyst Eric Balchunas lowered the odds of an Ether ETF approval from 50% to 35%. 

He told Cointelegraph the ETF process for Ether feels like the “reverse” of what he’d experienced during the spot Bitcoin ETF race, citing the SEC’s radio silence and several other political factors for the downgrade. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Additional reporting by Geraint Price, Sam Bourgi and Felix Ng.