SEC Ethereum Classification Attracts Special Attention Despite ETFs Approval
Key Points:
Despite acknowledging the approval as a positive step, ConsenSys criticized the SEC’s approach to digital assets, describing it as arbitrary and unfair. The development underscores the ongoing debate over SEC Ethereum classification as either a commodity or a security, a distinction with far-reaching regulatory implications.
ConsenSys stated: “Today’s approval signals that the SEC views ETH as a commodity, contrary to its previous stance, as highlighted in our recent lawsuit against the SEC. We will continue to fight for clear regulatory guidelines and support the bipartisan Congressional efforts aimed at achieving sensible regulation.”
The distinction between commodities and securities is significant for the crypto industry. Commodities, which include assets like gold and oil, are regulated by the Commodity Futures Trading Commission (CFTC), focusing on market stability and fraud prevention. In contrast, securities representing ownership in corporations or creditor relationships fall under the SEC‘s purview, with an emphasis on investor protection and disclosure requirements.
The CFTC has long viewed Ether as a commodity, permitting trading in Ether futures by CME Group. However, the SEC’s historical caution has left Ethereum in a regulatory gray area. The approval of the Ethereum ETF by the SEC could shift this perspective, particularly if S-1 registration statements for the ETFs from firms like VanEck, BlackRock, and Fidelity are signed off.
Justin Browder, a digital asset lawyer, suggested that S-1 approval would conclusively determine Ether’s status as a non-security. Despite this progress, finance lawyer Scott Johnsson noted that the approval order did not explicitly address SEC Ethereum classification, leaving some ambiguity.
Earlier this year, ConsenSys received a Wells notice from the SEC, primarily concerning its Metamask trading and staking services. The SEC and its commissioners are anticipated to make further statements on Ether’s classification soon.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
In an announcement from LayerZero Labs CEO Bryan Pellegrino on the X platform, a temporary…
BitMEX founder Arthur Hayes deposited 3,000 ETH—equivalent to approximately $10.67 m—into the LRT protocol EtherFi…
Ethereum Foundation has gained wide appeal in the crypto community.
Biden Administration Bitcoin roundtable aims to bring together top policymakers, House, and Senate, alongside prominent…
FTX debtors, creditor groups, and an offshore entity are all claiming FTX bankruptcy assets.
LayerZero token airdrop rules were announced by rewarding early participants and distributing 23.8% of tokens…
This website uses cookies.