May 24, 2024
SEC Denies Spot Ether ETF Classifications, Michael Saylor
Latest Cryptocurrency News

SEC Denies Spot Ether ETFs Classifications: Michael Saylor

MicroStrategy executive chair Michael Saylor speculates on the United States Securities and Exchange Commission’s (SEC) potential denial of listing and trading of spot Ether ETFs.

At the Bitcoin For Corporations conference on May 1, Saylor expressed his belief that the SEC would categorize ETH as crypto asset security within its regulatory jurisdiction, rather than a commodity under the U.S. Commodity Futures Trading Commission (CFTC). Michael Saylor suggested that this classification could extend to other tokens such as BNB, Solana, XRP, and Cardano, labeling them as “crypto asset securit[ies] unregistered.”

Source: Michael Saylor

Concerns Surrounding Spot Ether ETF Approval

Saylor’s remarks coincide with widespread concerns among experts regarding the SEC’s potential approval of spot Ether ETFs listing and trading on U.S. exchanges. Significant deadlines for ETF applications from VanEck and ARK Invest loom, with dates set for May 23 and May 24, respectively. These applications will play a pivotal role in shaping the regulatory landscape for spot Ether ETFs in the U.S.

Uncertainty Surrounding Ether’s Regulatory Status

The discussion surrounding Ether’s regulatory status intensified following revelations from an unredacted lawsuit filed by Consensys, which alleged that the SEC initiated an investigation into Ether as a security as early as March 2023. Despite previous statements suggesting clarity on the matter, SEC Chair Gary Gensler evaded direct questions regarding Ether’s classification as a security during an April 2023 hearing. This ambiguity adds further uncertainty to the regulatory outlook for Ether and its potential inclusion in ETF offerings.

Saylor’s stance reflects his role as a vocal advocate for BTC and his pivotal role in MicroStrategy’s acquisition of the cryptocurrency as a reserve asset. As of April 30, MicroStrategy held 214,400 BTC, valued at over $13 billion. His commentary underscores broader industry sentiment regarding the regulatory hurdles and challenges facing cryptocurrencies as they seek broader acceptance and institutional adoption in traditional financial markets.

Image by MicroStrategy on Flickr

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