ETH Security Status Receives Boost After Resounding Victory

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The US Securities and Exchange Commission (SEC) is reportedly set to allow the launch of exchange-traded funds (ETFs) based on Ethereum (ETH) futures, which marks a significant win for numerous firms that have long sought to introduce such products.

The SEC’s decision to greenlight an Ethereum futures ETF could have profound implications for Ethereum’s classification as a non-security, and could also potentially affect the regulatory treatment of other cryptocurrencies.

Ethereum Paradigm Shift

Numerous companies, including Volatility Shares, Bitwise, Roundhill, and ProShares, have filed applications to launch Ethereum futures ETFs. Insiders suggest that several may be approved as early as October.

Approving an ETF based on Ethereum futures contracts implicitly acknowledges that Ethereum itself is not considered a security. This decision challenges the notion that Ethereum should be regulated as a traditional financial security, considering its proof-of-stake mechanism, purpose, and usage.

The SEC’s approval of an Ethereum futures ETF could provide a compelling argument in favor of distinguishing between the underlying asset and how it is sold, bolstering the Torres Doctrine and potentially influencing the outcome of similar cases, such as the XRP appeal.

This anticipated approval holds tremendous significance for the cryptocurrency industry, as it could shape the regulatory landscape, paving the way for increased adoption and investment opportunities in the cryptocurrency market.

ETH’s price declined on the daily chart. Source: ETHUSDT on TradingView.com

Unfortunately, the news is not entirely favorable for ETH, as it trades at $1,660 after a significant decline in most digital currencies. ETH has declined more than 4% within 24 hours and 10% within seven days.

Featured image from iStock, chart from TradingView.com

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