Will #Ethereum Be Declared a Security By the SEC Next Week?
The SEC may classify Ethereum as a security, potentially leading to the rejection of spot Ethereum ETF applications, warned a digital assets lawyer. Decisions on VanEck's and ARK Invest/21Shares' applications are imminent, with BlackRock, Fidelity, and Grayscale also awaiting SEC review.
In March, the SEC hinted at rejecting BlackRock's application and Nasdaq's proposal, questioning whether Nasdaq properly filed under its rules. Scott Johnson of Van Buren Capital emphasized the importance of this, suggesting it could lead to denial if spot filings are miscategorized.
However, Terrence Yang of Swan Bitcoin deemed it "highly unlikely" for Ethereum to be explicitly classified as a regulated security, given potential political backlash. Despite hopes for spot Ethereum ETFs following Bitcoin's approval in January, traders on Polymarket express pessimism.
While SEC Chair Gary Gensler has recognized Bitcoin as a commodity, he has avoided commenting on Ethereum's status. Consensys' lawsuit alleges the SEC internally viewed Ethereum as a security, seeking a federal judge's declaration of Ethereum as a commodity.
Before approving spot #BitcoinETFs , the SEC had denied similar applications for a decade, citing concerns about fraud and market manipulation. Yang warned of potential legal challenges and political backlash if the SEC cites market manipulation again, similar to the approval of Ethereum futures ETFs last October.
Source - decrypt.co