EddieJayonCrypto
14 May 24
The Securities and Exchange Commission (SEC) is expected to reject several spot Ethereum ETF applications and may assert that Ethereum is a security. The regulator is due to decide on VanEck’s application on May 23, followed by a final decision deadline for ARK Invest/21Shares’ application the next ...
The Securities and Exchange Commission (SEC) is poised to reject multiple spot Ethereum ETF applications and potentially declare Ethereum as a security. The decision on VanEck’s application is expected on May 23, followed by the final decision deadline for ARK Invest/21Shares’ application the next day. BlackRock, Fidelity, and Grayscale also have pending applications. The SEC has indicated potential grounds for disapproval of BlackRock’s application and Nasdaq’s proposal. Speculation surrounds the possibility of the SEC explicitly asserting Ethereum as a regulated security in its expected ETF denials, though some view this as highly unlikely due to political considerations. Traders are pessimistic about ETF approval this month, with a 16% chance predicted on the Polymarket platform. The SEC has remained secretive about Ethereum's regulatory status, causing concerns about potential legal and political challenges if the SEC denies Ethereum ETFs based on past reasoning related to market manipulation. There are debates regarding the SEC's potential assertion that Ethereum is a security in its expected rejections of spot Ethereum ETF applications. Some industry figures believe such a move is unlikely due to political considerations, which have intensified in the current climate. Following the SEC’s recent approval of spot Bitcoin ETFs, hopes for similar treatment for spot Ethereum ETFs have dwindled. Traders have expressed a pessimistic 16% chance of ETF approval this month on the Polymarket platform. SEC Chair Gary Gensler, while affirming Bitcoin as a commodity, has refrained from commenting on Ethereum’s regulatory status. A lawsuit filed by Consensys alleged that the SEC internally perceived Ethereum as a security for over a year. The SEC had denied similar Bitcoin ETF applications for a decade before finally approving spot Bitcoin ETFs in January. If the SEC were to point to market manipulation again in rejecting Ethereum ETFs, similar legal and political challenges are expected, as seen with the SEC's previous stance on Bitcoin ETFs. Overall, the SEC’s decision on Ethereum's classification as a security carries significant implications for the crypto market, with potential legal and political ramifications.
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