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>>The approval of the Spot Ether ETF demonstrates that the SEC does not consider Ethereum to be a security, industry experts claim.

The approval of the Spot Ether ETF demonstrates that the SEC does not consider Ethereum to be a security, industry experts claim.

crypthub

1/24/2025, 11:50:24 AM

ETF Approval and Ether's Classification

The recent approval of spot Ethereum exchange-traded funds (ETFs) by the SEC has sparked a debate about Ether's classification. Industry experts suggest that this move implicitly affirms Ether's status as a non-security, moving away from its traditional label as a security.

Expert Opinions and Implications

Bloomberg ETF analyst James Seyffart and digital asset lawyer Justin Browder agree that the approval signifies the SEC's recognition of Ether as a commodity rather than a security. This could potentially extend to other tokens, solidifying their classification as non-securities or commodities. Adam Cochran from Cinneamhain Ventures supports this view, emphasizing the alignment of these tokens' attributes with commodities.

Staking and Further Regulatory Scrutiny

While ETF approval reinforces Ether's non-security status, experts anticipate continued SEC focus on activities related to staking. Seyffart and others speculate that staked Ether might be classified as a security, distinguishing it from the base Ether token. The SEC's official statement lacked explicit confirmation of Ether's non-security classification, leaving some lawyers like Scott Johnsson to question its clarity.

ETF Issuance and Potential Impact

Major ETF issuers like VanEck, BlackRock, Fidelity, Grayscale, and Franklin Templeton received approval for spot Ether ETFs on May 23rd. Notably, several removed staking from their final amendments. Despite regulatory approval, all eight approved issuers must receive S-1 registration statement approval before trading begins, a process expected to be finalized in weeks or up to five months. Some analysts predict this could trigger a substantial price surge in Ether, with estimates reaching a 60% increase.