On June 19, 2024, the U.S. Securities and Exchange Commission (SEC) officially concluded its investigation into whether Ethereum (ETH) is a security, marking a significant moment for the cryptocurrency market.
However, experts are divided on the implications of this decision, with some arguing that it does not necessarily rule out the possibility that Ethereum will be classified as a security in the future. Here, we present various perspectives on the matter.
Why did the SEC close its investigation into Ethereum?
According to Consensys’ lawyer, Laura Brookover, the SEC’s decision was likely driven by pressure to withdraw subpoenas against Consensys following the recent approval of Ethereum exchange-traded funds (ETFs). The lawyer believes the SEC will not make further claims that ETH is a security.
Carol Goforth, a professor at the University of Arkansas, argues that we should not rule out the possibility of Ethereum being labeled as a security. He emphasizes that the approval of an ETF does not affect the classification of the underlying assets.
Goforth suggests that the SEC may have concluded that it would be difficult to prove that ETH meets the Howey Test, given the wide distribution and trade of the assets and the influence of market forces on profitability.
Bitwise adjusts spot Ethereum ETF application
Bitwise Asset Management has amended its application for a spot Ethereum ETF with the US SEC, marking a final step towards the launch of the fund.
The filing reveals that Pantera Capital, a leading investor in the crypto space, is considering purchasing up to $100 million in shares. However, this amount is not final and may change depending on the actual launch and macroeconomic factors.
If Pantera were to purchase this amount of shares, it could potentially lead to a market rise similar to that seen with the Bitcoin ETFs, with Ethereum potentially even sparking an altcoin season.