Ethereum Futures ETF Still Shows Positive Signs Despite SEC Conflict

Key Points:

• Positive dialogue between issuers and the SEC raises hopes for the approval of Ethereum futures ETFs, despite recent scrutiny over Ethereum’s classification as a security.
• Court filings reveal the SEC’s prolonged belief that Ethereum could be considered a security, sparking legal battles and accusations of bias.
• Rep. McHenry accuses SEC Chair Gensler of misleading Congress regarding Ethereum’s classification.

The Securities and Exchange Commission (SEC) is currently engaged in discussions regarding the possibility of approving Ethereum futures ETFs.

Readmore: What Is A Spot Ethereum ETF? How Important Is The New Ether ETF?

Ethereum Futures ETF Approval Hopeful Amid SEC Talks

Despite recent allegations suggesting the SEC‘s consideration of Ethereum as a security, there’s a glimmer of hope for Ethereum futures ETFs.

Eleanor Terrett, a Fox journalist, reports that several issuers pursuing leveraged Ethereum futures ETFs have had positive exchanges with SEC staff. One issuer expressed optimism based on their interactions, anticipating SEC approval for the Volatility Shares’ 2x Ether Strategy ETF ($ETHU) to launch on June 4.

This optimism contrasts with SEC Chair Gary Gensler‘s past stance, where he regarded Ethereum as a security during the preceding year. Such classification, if upheld, could have significant implications for the regulation of digital assets in the United States.

Controversy Over SEC Classification of Ethereum

A recent court filing by Consensys sheds light on the SEC’s alleged classification of Ethereum as a security. The document suggests the SEC and Gensler maintained this view for at least a year, potentially contradicting previous statements. Consensys has taken legal action, asserting the SEC’s attempt to monopolize the Bitcoin market and raising concerns about bias following the SEC’s involvement in the Ripple controversy.

Furthermore, Rep. Patrick McHenry, chair of the House Financial Services Committee, accuses Gensler of misleading Congress regarding the SEC’s stance on Ethereum.