The Ethereum network reached a milestone of one million validators Thursday, staking about 32 million Ether, worth an estimated US$114 billion.

This number accounts for roughly 26% of Ethereum’s total supply.

The transition of the Ethereum blockchain to a proof-of-stake system in September 2022 has been instrumental in attracting this large number of validators, who are rewarded for their contributions to the network’s security.

Lido, a leading staking pool, has emerged as a preferred platform, holding about 30% of all staked ETH and allowing individuals with smaller holdings to participate in staking.

However, the growing validator count has sparked debate within the Ethereum community, with some expressing concerns over the possibility of over-staking and the potential rise in transaction failures.

In the regulatory area, the U.S. Securities and Exchange Commission (SEC) has reportedly been issuing subpoenas to entities associated with the Ethereum Foundation.

According to Fortune, these legal actions are part of an investigation targeting the foundation’s dealings, with a focus on the non-profit organization headquartered in Switzerland.

The Ethereum Foundation is known for its role in the development and governance of the Ethereum blockchain.

Some firms reportedly received subpoenas shortly after Ethereum’s transition to proof-of-stake from the previous proof-of-work model.

The regulatory body’s steps have sparked discussions around its potential implications for the classification of Ether as a security.

The regulatory authority has been postponing decisions on several applications for such Ether ETFs and is expected to make a decision on May 23.

According to BlackRock CEO Larry Fink, one of the Ether ETF applicants, such a financial product can be possible even if the digital asset is classified as a security.