United

James

The approval of spot Ether exchange-traded funds is “implicit recognition” from the United States Securities and Exchange Commission (SEC) that Ether is not a security, according to industry pundits.
One even suggests this could extend to other tokens as well.&nbsp;
“These are commodities-based trust shares, so the SEC, by approving these, is explicitly saying they’re not going to go after Ether as a security,” <a href="https://www.youtube.com/live/lx4pwSXycck" target="_blank" rel="noopener nofollow">stated</a>&nbsp;Bloomberg ETF analyst James Seyffart in a discussion with Ryan Sean Adams on the Bankless podcast.
Digital asset lawyer Justin Browder <a href="https://x.com/jlb410/status/1793037184582226259" target="_blank" rel="noopener nofollow">believes</a> if Ether ETFs get S-1 approval — the final piece needed for them to start trading — then the “debate is over: ETH is not a security.” 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/2c88ae11-1646-4b70-9aa2-fc702a1aa5de.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/TuongvyLe12/status/1793756308610441261" target="_blank" rel="noopener nofollow">TuongVy Le</a>
 </figcaption>
</figure>
Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, went one step further, <a href="https://x.com/adamscochran/status/1793755532181766336" target="_blank" rel="noopener nofollow">arguing</a> that this approach&nbsp;could extend to other projects’ tokens:
<blockquote data-ct-non-breakable="true">
 “ETH is a commodity, even with its current attributes. That means we can extrapolate to *A LOT* of other projects what elements matter in security. Today a lot of things probably clearly became commodities, even if they don’t know it yet.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/eacecb97-02cd-4b3f-8022-56f79cce7c2d.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/iampaulgrewal/status/1793754570986021130" target="_blank" rel="noopener nofollow">Paul Grewal</a>
 </figcaption>
</figure>
However, Seyffart and others believe the SEC could continue to pursue actors involved with staking Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>): 
<blockquote data-ct-non-breakable="true">
 “[I think they will] try thread this needle and say ETH itself, they’re not going to call a security but staked ETH might be a security [...] and I don’t believe they’re going to give that up any time soon.”
</blockquote>
Digital asset lawyer Joe Carlasare agrees with Seyffart’s view.
“The SEC could pursue individual actors and staking as a service even with the ETF launched. I think other actions are less likely,” Carlasare told Cointelegraph.
In April, Ethereum infrastructure firm Consensys received a Wells notice from the SEC, which was primarily focused on MetaMask’s trading and staking services.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/298e0ce4-745c-453b-8215-d5727dc7b4a0.PNG" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/MetaLawMan/status/1793791399411716295" target="_blank" rel="noopener nofollow">James Murphy</a>
 </figcaption>
</figure>
Finance lawyer Scott Johnsson also <a href="https://x.com/SGJohnsson/status/1793755607880904921" target="_blank" rel="noopener nofollow">noted</a> the SEC didn’t confirm Ether’s non-security status in its approval order, saying it “completely sidestepped” the issue. 
However, the SEC and some of its commissioners are expected to make an official statement in due course.
Related: <a href="https://cointelegraph.com/news/2025-good-year-crypto-policy">2025 to be ’a good year for crypto policy,’ industry experts say</a>
The SEC <a href="https://cointelegraph.com/news/sec-spot-ether-etf-approved">officially approved 19b-4 applications</a> from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy and Bitwise to issue spot Ether ETFs on May 23. Many ETFs issuers notably removed staking in their final amendments.&nbsp;
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/fec33752-7214-493a-ba15-5977629a94e4.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/tim_khoury/status/1793755641338892647" target="_blank" rel="noopener nofollow">Tim Khoury</a>
 </figcaption>
</figure>
Hashdex was the only ETF issuer that didn’t receive regulatory approval on the day.
However, the eight approved ETF issuers will need to wait until the SEC signs off on their S-1 registration statements before launching.
Magazine: <a href="https://cointelegraph.com/magazine/godzilla-vs-kong-can-sec-prevail-against-crypto-legal-firepower/">Godzilla vs. Kong: SEC faces fierce battle against crypto’s legal firepower</a>

SEC’s ETF decision means ETH and ’a lot’ of other tokens are not securities

Cointelegraph

Other articles published on May 24, 2024

Crypto Bounces Back, But Stablecoins Emerge As Investor Safe Haven

Chainlink: 62% of holders ‘in the money’ as LINK hits 6-week high

Pantera, Figure Buy Remaining Discounted FTX Solana Tokens

ONDO Still Bullish After New ATH and 30% Price Surge, Will VET Price Follow After US Carbon Tradi...

XRP Skyrockets 108% in Volume Amid $400 Million Crypto Market Sell-off

BNB Price Breaks Above $600 As Bull Flag Forming Just Below ATH; Analysts Believe Binance Coin an...

Join our free newsletter for daily crypto updates!