The U.S. Securities and Exchange Commission is seeking to categorize ether (ETH-USD) as a security, according to a Wednesday media report, a decision that could significantly impact the Ethereum blockchain and the wider cryptocurrency market.

The SEC has issued investigative subpoenas to U.S. companies over the past few weeks, Fortune reported. The increased scrutiny delivers a blow to the crypto space, as Wall Street firms seek to gain approval to list spot ether (ETH-USD) exchange-traded funds.

The news comes after the Ethereum Foundation, a non-profit organization that supports the ETH ecosystem, received last month a voluntary and confidential inquiry from an unnamed “state authority.”

“We have received a voluntary enquiry from a state authority that included a requirement for confidentiality,” according to a commit message posted to GitHub on Feb. 26.

The Ethereum Foundation did not immediately respond to Seeking Alpha’s request for comment.