SEC In ‘Deep Trouble’ With Crypto Post-Ethereum ETF Approval
The post SEC In ‘Deep Trouble’ With Crypto Post-Ethereum ETF Approval appeared on BitcoinEthereumNews.com.
On Thursday, the US Securities and Exchange Commission (SEC) made a landmark decision by approving eight spot Ethereum Exchange-Traded Funds (ETFs) from leading financial institutions and crypto firms, including Grayscale, Bitwise, BlackRock, and ARK. This historic approval, which consolidated proposals from the Nasdaq, NYSE, and CBOE, marked a significant shift in the regulatory landscape of digital assets. Why The SEC Is In ‘Deep Trouble’ With Its Crypto Cases However, this decision comes with its complexities, particularly in light of ongoing legal challenges involving the classification of other cryptocurrencies. Prominent crypto lawyer James “MetaLawMan” Murphy commented, “I believe the SEC is in deep trouble with some of its crypto cases in light of its determination that ETH is a commodity.” He emphasized that the SEC repeatedly argued in the Coinbase case “that crypto tokens that operate within an ‘ecosystems are securities.’ I believe the SEC will have difficulty explaining how ETH, which operates within a giant ecosystem, is a commodity, but SOL and ADA are securities when traded on Coinbase.” This statement encapsulates the core of the issue: Ethereum operates within a robust ecosystem that includes not just investment and trading but also decentralized applications and smart contracts, similar to other blockchains like Solana and Cardano. The distinction made by the SEC might complicate its stance in ongoing and future litigation, particularly cases involving other cryptocurrencies that operate under similar paradigms but are classified differently. Murphy also suggested potential legal maneuvers by affected parties: “Coinbase is due to file a Reply Brief tomorrow on its Petition to Certify Interlocutory Appeal. It would not surprise me if they also filed a request for rehearing of their motion to dismiss in light of the fact that the SEC now concedes that ETH is a commodity.” He also refers to Judge Failla’s earlier ruling…
Filed under: News - @ May 24, 2024 6:24 pm