The second largest cryptocurrency by market cap lost over 6% on Tuesday due to the fact that governments bodies and other agencies are analysing whether digital assets should follow the same rules as regular stocks or not.
Regulators are investigating coin after coin to see which cryptocurrencies can be influenced by their creators or founders. The SEC and the US Commodity Futures Trading Commission (CFTC), will be discussing these issues on Monday.
As reported by The Wall Street Journal, Ethereum is under regulatory scrutiny. Additionally, the creation of this virtual currency is being questioned as ‘an illegal securities sale.’ For the regulators, the managers of Ethereum may have an influence on the price of the cryptocurrency, and this is being investigated.
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