US SEC Can Deny Spot Ether ETF, Says Ex-Blockchain Association Official

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The Securities and Exchange Commission (SEC) has the authority to reject spot Ethereum (ETH) ETF proposals, potentially citing correlation issues without directly addressing Ether’s security status. This approach allows the SEC to avoid definitive classification, leading to ongoing uncertainty. Recent statements suggest that the SEC will refrain from labeling Ether unless pressured to do so, indicating a continued lack of clarity in regulatory stance.

There is a notable tension between the SEC and the Commodity Futures Trading Commission (CFTC) regarding Ether’s classification as a commodity. While the CFTC has recognized Ether as a commodity, the SEC’s reluctance to confirm its status adds complexity to ETF approval processes. Former Blockchain Association official and legal expert Jake Chervinsky has commented on the SEC’s approach, highlighting concerns about the potential denial of Ether ETFs and its implications.

SEC Chairman’s Interview with Yahoo Finance

During an interview with Yahoo Finance, SEC Chairman Gary Gensler opted to sidestep direct discussions regarding Ethereum ETFs. Gensler’s avoidance of addressing specific filings related to Ether ETFs reflects the SEC’s cautious approach to the topic. Despite repeated attempts by the interviewer to broach the subject, Gensler refrained from providing insights into the SEC’s stance or potential regulatory actions concerning Ether ETFs.

Speculation arises regarding the SEC’s stance on Ethereum ETFs based on Gensler’s evasive responses. While his reluctance to engage with the topic may indicate a reserved approach by the SEC, it leaves industry observers with limited clarity regarding the regulator’s intentions or potential future decisions.

Also Read: Binance Counters US SEC With Ripple Ruling, Says Wahi Case Is Bad Precedent

Market Anticipation and Prospects for Spot Ethereum ETF Approval

Industry observers anticipate the SEC’s approach towards spot Ethereum ETFs, considering the regulator’s history with cryptocurrency-related products. Analysis suggests that the success of Bitcoin ETFs may influence the SEC’s stance on Ethereum ETFs, although significant regulatory hurdles remain.

The potential impact of staking on the approval of spot Ethereum ETFs is under scrutiny. Staking, a process integral to Ethereum’s transition to a proof-of-stake consensus mechanism, could affect the SEC’s evaluation of Ethereum’s investment suitability and regulatory status. As discussions around spot Ethereum ETFs continue, industry participants closely monitor regulatory developments and assess the potential implications.

Also Read: Worldcoin (WLD) Price Soars 45% As Sam Altman Welcomes OpenAI Board Members

The post US SEC Can Deny Spot Ether ETF, Says Ex-Blockchain Association Official appeared first on CoinGape.

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