SEC Ethereum Security scrutiny raises fears of chaos in crypto markets

The SEC may be investigating whether Ethereum should be classified as a security, causing uncertainty and potential chaos in crypto markets.

Possible SEC motivations include denying Ethereum spot ETFs or forcing exchanges to delist Ether.

Unlikely outcomes explored include Ethereum reverting from proof-of-stake back to mining or adopting alternative chains like Ethereum Classic.

XRP advocates argue the SEC unfairly favors Ethereum over assets like XRP that face more legal scrutiny.

The SEC risks another major legal loss given existing regulatory allowances for Ethereum futures and growing criticism of its "lawfare" against crypto.