Analysts say Ethereum ETF approval means ETH and many other cryptocurrencies just became commodities

The approval of an Ethereum ETF (exchange-traded fund) suggests that many other tokens are also not securities and therefore not regulated by the Securities and Exchange Commission (SEC), analysts said.
“Ethereum is a commodity, even with its current properties,” Adam Corcoran, a partner at venture capital firm Cinneamhain Ventures, said in a May 23 X post. “This means we can infer what factors are important in securities for other projects.”
Many things today may have clearly become commodities, even if they don’t know it yet.”
How to classify cryptocurrencies is a major question. If Ethereum and other cryptocurrencies are not securities, then they are commodities and will be regulated by the Commodity Futures Trading Commission (CFTC).
This will allow these cryptocurrencies to escape the regulatory oversight of the SEC, which is widely viewed in the industry as hostile to their development. Hopefully, such an outcome will lead to clearer regulation and greater opportunity for innovation and growth in the cryptocurrency industry.
Ethereum ETF Approval Suggests ETH Is Not Considered a Security
Many industry observers and experts believe that the SEC’s approval of an Ethereum ETF marks the end of the debate surrounding the status of this leading token and whether it should be classified as a security or a commodity.
“These are commodity-based trust shares, so the SEC is making it clear by approving these shares that they are not treating ethereum as a security,” Bloomberg ETF analyst James Seifat said in an interview on Ryan Sean Adams’ Bankless podcast.
Digital asset lawyer Justin Browder agrees with Seifat. Now, the only condition required for these investment products to begin trading is the SEC’s approval of the S-1 form for the Ethereum ETF. According to Browder, approval of these forms will confirm that “ETH is not a security.”
Not everyone agrees. Financial lawyer Scott Johnson said the SEC did not give any indication of ETH’s security status. Instead, he said the regulator completely sidestepped the issue in its recent approval.
ETH may not be a security, but staking providers are still at risk
There is some uncertainty as to whether the SEC will continue to pursue legal action against crypto businesses that offer Ethereum staking services. This includes MetaMask developer ConsenSys, which received a Wells Notice from the regulator earlier this year.
“I wonder if they’re going to try to find a way to call the equity interests securities,” Seifat said in a May 21 X post.
Related articles:
Upcoming Cryptocurrency Presales: Unlock Early Investment Opportunities!
Joe Biden campaign posts job posting for meme expert
BlockGames Partners with Magic Eden to Launch NFT Collection - More Information Below
Smog (SMOG) - SMOG coin with rewards
score
Airdrop Season 1
Earn experience to earn your share of $1 million
Recommended on Cointelegraph
Equity Rewards - 42% APY
10% OTC Discount - smogtoken.com
Visit website
Join our Telegram channel to get the latest news