HomeNewsConsensys Slams SEC's Ad Hoc ETH ETF Approval

Consensys Slams SEC’s Ad Hoc ETH ETF Approval

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  • Consensys calls SEC’s late-night approval of ETH Spot ETFs a symptom of regulatory misuse and inconsistency.
  • As a hint that ETH is seen as a commodity rather than a security, the SEC allows ETH Spot ETFs for large issuers.

A turning point in the history of digital assets was reached recently when the Securities and Exchange Commission (SEC) decided to permit Ethereum (ETH) Spot ETFs. Industry executives have, meanwhile, also expressed disapproval and dispute about it.

Consensys’ Reaction to the SEC Ruling

Leading participant in the Ethereum ecosystem, Consensys, has hailed the SEC’s approval of ETH Spot ETFs. They think it’s a positive move, but they find the SEC’s strategy to be dubious.

This last-minute permission, claims Consensys, is just another example of the SEC’s erratic and haphazard regulatory approaches to digital assets.

They contend that this disparity erodes the rule of law, is unjust to market players, and stunts innovation in the field of digital assets. Joe Lubin, co-founder of Ethereum and CEO of Consensys said:

“We don’t take this step lightly, but we feel compelled to act. Ethereum is for everyone.”

Consequences for Ethereum: Security vs. Commodity

The SEC’s acceptance of spot ETH ETFs suggests that it now views Ethereum more like a commodity than a security, in line with what ETHNews previously disclosed. This is a far different approach from the SEC’s prior one, which frequently viewed digital assets—including ETH—with suspicion and legal obstacles.

Consensys emphasizes the importance of this change, especially in view of their continuing case against the SEC, in which they are pursuing final regulatory clarity. They stress the need of cooperative congressional efforts to create just and understandable rules for digital assets.

The ETH ETF Road Ahead

Eight Ethereum ETF issuers have received the all-clear from the SEC: BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. Before trading may start, these issuers must still have their S-1 registration statements become operative.

While the precise timeframe is yet unknown, Bloomberg analyst James Seyffart estimates that this process could take several weeks. This waiting stage is essential for the ETFs to start trading, which complicates the market’s expectations even more.

Reactions and Current Market Data

CoinMarketCap data show the price of Ethereum as of writing is at $3,733.21. Over the previous 24 hours, this is a 1.80% drop. Even with this little decline, Ethereum has been trending upward over the last week, rising by a noteworthy 25.53%.

The contradicting responses in the market highlight the conflict between market performance and regulatory interventions. Though the introduction of ETH Spot ETFs is a welcome step, stakeholders in the digital asset sector still face difficulties due to the regulatory environment.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628