The United States Securities and Exchange Commission (SEC) may be looking into the Ethereum Foundation (EF), which raises questions about whether Ether (ETH) qualifies as a security. The adoption of Ether exchange-traded funds may be impacted by the subpoenas the SEC sent to affiliates of the Ethereum Foundation group.
Eleanor Terrett, a Fox Business contributor, believes that the SEC’s silence on the hosting of cryptocurrencycurrency exchange-traded funds is likely owing to these subpoenas. As a result, Bloomberg analysts believe the chances of approving a spot Eterbear ETF by May have decreased from 70% to 25%.
Industry analysts are hesitant to elaborate on Chair Gary Gensler’s previous statements because they predict a coordinated attack on ETH. Based on Genslar’s previous remarks, Coinbase’s legal officer Paul Grewal said that the SEC’s lack of reason for rejecting ETH ETF applications was fundamental.
Some, including former CFTC Commissioner Brian Quintenz, believe the SEC has previously identified Ethereum’s security issues. However, Cardano founder Charles Hoskinson believes there will be a change as a result of Ethereum’s transition to a proof-of-stake mechanism.
Finally, because the following dates are in May or later, the SEC has limited the ability to make a swift decision on the spot Ether ETF. Investors, like BlackRock and Fidelity, are in limbo as conversations and study into Ether’s potential regulatory status continue.
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