Allegations that the SEC has taken action to classify Ethereum as a security and launched an investigation into the Ethereum Foundation are occupying the agenda of the cryptocurrency world.
Some of us argue that Ethereum has change into a security with its transition to the Proof of Stake consensus mechanism. On the opposite hand, Brian Quintenz, head of world coverage at venture capital firm a16z, made a sing that this downside is now not going.
Quintenz reiterated that Ethereum is now not a security.
Quintenz reminded the public of a total lot of shrimp print:
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When the SEC allowed Ethereum (ETH) Futures Alternate Traded Funds (ETFs) to alternate on regulated securities exchanges, it explicitly acknowledged that Ethereum is now not a security and is exterior its jurisdiction.
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This approval decision for ETFs used to be made in October 2023, higher than a year after Ethereum switched to Proof of Stake (PoS) consensus in September 2022. This implies that, in step with the SEC, Ethereum is now not a security as of October 2023.
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If the SEC had any doubts about Ethereum’s regulatory station in October 2023, it wouldn’t beget licensed the ETF. If Ethereum had been in actual fact a security, the futures contracts listed by the Commodity Futures Trading Commission (CFTC) on which the ETFs are basically based could presumably be unlawful.
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Additionally, if Ethereum had been a security, the Ethereum Futures ETF could presumably be an unlawful instrument. The SEC can now not approve an unlawful instrument to be traded on a national securities alternate.
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If the SEC delays or rejects an Ethereum ETF, it’d be engaging to beget a look at what excuse, if any, it makes use of, provided that it has already notified the market that Ethereum is exterior its jurisdiction.
*That is now not funding advice.
