Fun

Pundits worry SEC’s Ethereum probe could be used to hold back ETFs

News Feed - 2024-03-21 02:03:11

Brayden Lindrea3 hours agoPundits worry SEC’s Ethereum probe could be used to hold back ETFsThe SEC’s reported investigation into the Ethereum Foundation could explain why the regulator hasn’t been forthcoming with prospective spot Ether ETF issuers, some suggest.919 Total views10 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe reported probe into the Ethereum Foundation could be part of a “coordinated attack” on Ether (ETH) and may be used as a reason to deny or delay spot Ether exchange-traded funds (ETFs), according to industry pundits.


On March 20, Fortune reported that the United States Securities and Exchange Commission issued several subpoenas to companies that have worked with the Ethereum Foundation. Sources familiar with the matter said the commission had launched a campaign to classify ETH as a security in 2022.


“The SEC has no good reason to deny the ETH ETP applications,” argued Coinbase chief legal officer Paul Grewal in response to the news, noting that SEC Chair Gary Gensler once testified before Congress that Ether is not a security.“We hope they won’t try to invent one by questioning the long established regulatory status of ETH, which the SEC has repeatedly endorsed. That’s not how the law works.”


“This now very obviously feels like a coordinated attack on ETH,” said Travis Kling, chief investment officer of Ikigai Asset Management, in a March 20 X post. “I wonder what’s gonna happen.”


Fox Business reporter Eleanor Terrett even suggested that the subpoenas could explain why the securities regulator has seemingly been reluctant to engage with prospective spot Ether ETF issuers.


The regulator’s seeming lack of engagement is one of the main reasons why Bloomberg ETF analysts Eric Balchunas and James Seyffart recently reduced their odds of an approved spot Ether from 70% to 25% by May.


Meanwhile, Patrick McHenry, chair of the House Financial Services Committee, and others have shared disapproval of the reported move, saying it would be contrary to the regulator’s previous actions.Reports indicate @GaryGensler is moving to unilaterally classify #ETH as a security.

This is contrary to the @CFTC's assessment and the @SECgov's prior actions.

Congress decides the SEC's jurisdiction and budget, Chair Gensler doesn't get to make it up as he goes along. https://t.co/83DUkCjMVA— Patrick McHenry (@PatrickMcHenry) March 20, 2024


Brian Quintenz, a former commissioner of the Commodity Futures Trading Commission also argued that the SEC had already “explicitly acknowledged” the non-security status of Ether last October when it approved Ether futures ETFs.


However, Cardano founder Charles Hoskinson believes the SEC may have changed its mind on Ether’s security status after Ethereum transitioned to a proof-of-stake consensus mechanism in September 2022.


But Quintenz argued the SEC would have factored the Ethereum Merge into its decision to approve the Ether futures ETFs as the former event occurred before the latter.


If Ether were a security, it would mean CFTC-listed Ether futures ETFs would be illegal, as any derivative of Ether would be considered a securities futures contract and thus be subject to different rules, Quintenz explained.Source:Brian Quintenz


“It will be interesting to watch what, if any, excuse the SEC uses if it were to delay or deny an ETH ETF, given it has already informed the market on ETH being outside its jurisdiction,” added Quintenz.


Related:Prometheum claims Ether is a ‘digital asset security’ with launch of custody services


For now, the SEC has continued to delay its decision on spot Ether ETFs applications, punting them back to May or later.


Applicants include BlackRock, VanEck, ARK 21Shares, Fidelity and Invesco Galaxy, Grayscale and Hashdex and Franklin Templeton.


Balchunas and Seyffart now predict the spot Ether ETFs will be denied but expect an approval to follow sometime before 2025.


Magazine:SEC delays Ether ETFs, Binance settlement approved and another court loss for SBF: Hodler’s Digest, Dec. 17–23# Cryptocurrencies# Business# Security# Ethereum# SEC# ETF# Adoption# Commodities Investment# Regulation# Gary GenslerAdd reactionAdd reactionRead moreHonduras gains new support in $11B tussle with crypto island PrósperaCoinbase to launch DOGE futures, says it "transcended" meme originsBlackRock receives memecoins, NFTs after depositing $100M USDC onchain

News Feed

Musk’s Twitter Payment Vision in Tune With Fiat-Crypto Gateway Alchemy Pay
Musk"s Twitter Payment Vision in Tune With Fiat-Crypto Gateway Alchemy Pay sponsored Elon Musk’s Twitter has fallen into revenue difficulties, hoping to find new sources of re
Savannah Fortis12 hours agoUS and Vietnam make deals on AI chips and tech worth billionsThe U.S. and Vietnam completed business deals and partnerships worth billions of dollars to advance the AI, semiconductor and cloud
China Offers Medics Digital Yuan Insurance Policy for Covid-19
China Offers Medics Digital Yuan Insurance Policy for Covid-19 China’s first insurance policy using the digital yuan for settlement has been issued in Shen
UK’s FCA provides more guidance on crypto promotion compliance
Derek Andersen4 hours agoUK’s FCA provides more guidance on crypto promotion complianceThe financial regulator is trying to bring companies offering crypto services into line with requirements that came into force in O
Bittrex Global’s IEO Platform Starting Block Gears up for YellowHeart Debut
Bittrex Global’s IEO Platform Starting Block Gears up for YellowHeart Debut press release PRESS RELEASE. Bittrex Global, a leading digital asset exchange, welcomes the YellowHeart
William Suberg10 hours agoBitcoin open interest passes $15B as analyst warns of 20% BTC price dipThe highest Bitcoin open interest levels in over six months come as analysis predicts that BTC price action will fail to fl
What Will Send Dogecoin Soaring? Analyst Reveals The Key Drivers
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin and Ether lead $17.8B crypto inflows
Zoltan Vardai14 hours agoBitcoin and Ether lead $17.8B crypto inflowsBitcoin saw its fifth-largest week of inflows on record, helping it recapture the $60,000 mark, while Ether inflows took second place in anticipation o
Tomer Warschauer Nuni10 hours ago5 things crypto must get right for mainstream adoption to happenMainstream crypto adoption will require an enormous effort, and it’s still likely to be several years away.1024 Total vie
Helen Partz9 hours agoBitcoin ETF to trigger massive demand from institutions, EY saysBitcoin is facing a lot of pent-up demand from institutions amid investors closely monitoring spot Bitcoin ETF news, Ernst & Young
President Joe Biden is trying hard to ‘kill crypto,’ says Cardano founder
Martin Young3 hours agoPresident Joe Biden is trying hard to ‘kill crypto,’ says Cardano founder“A vote for Biden is a vote against the American cryptocurrency industry,” said Charles Hoskinson in a video that la
Digital Chamber urges US senators to support Lummis’ Bitcoin reserve bill
Brayden Lindrea7 hours agoDigital Chamber urges US senators to support Lummis’ Bitcoin reserve billThe crypto advocacy group says it is hand-delivering letters to every US Senator explaining why Bitcoin would help the