- SEC approves spot Ether ETFs, indicating a potential shift toward recognizing ETH as a commodity, not a security.
- U.S. Senate considers FIT21, aiming to clarify SEC’s digital asset role and potentially easing regulatory constraints.
At the Consensus 2024 conference in Texas, Bill Hughes, the senior counsel and director of global regulatory matters at Consensys, discussed the uncertain future of Ethereum (ETH) regulation by the SEC.
Hughes noted that the political environment leading up to the 2024 election might impact the SEC’s approach to crypto-related policies.
Consensys is currently engaged in a legal battle with the SEC, challenging the commission’s plans to classify ETH as a security. This classification could have significant repercussions for Ethereum and its stakeholders.
Recently, however, the SEC has shown signs of a potentially more lenient stance towards ETH. It approved filings from several asset managers to list and trade spot Ether ETFs, recognizing ETH more as a commodity than as a security.
Today, we sued the #SEC.
They have no right to unplug the U.S. from #Ethereum.
They have no right to prohibit peer-to-peer blockchain software.
Too many Americans – developers, investors, and everyday users – are going to be hurt if they are allowed to continue unopposed.… https://t.co/RxInVS9ZCg
— Bill Hughes : wchughes.eth 🦊 (@BillHughesDC) April 25, 2024
Hughes pointed out that these approvals are an initial step that could suggest a shift in the SEC’s regulatory approach, although the long-term effects are yet to be determined. He remarked that the commission’s decision to approve spot Ether ETFs could indicate a less adversarial approach to crypto regulations in the future. However, Hughes was cautious about predicting further regulatory changes or rulemakings by the SEC.
“I don’t expect a wave of proposed rulemakings like the industry has suggested for years now. [Approving spot Ether ETFs] may be the only thing that they do which is considered less antagonistic to crypto than they’ve normally been doing.”
The internal and external political pressures could influence future decisions and policies at the SEC, according to Hughes. He suggested that these factors might steer the commission’s policy decisions in new directions, particularly in its dealings with digital assets.
In the legislative arena, the U.S. Senate is considering the Financial Innovation and Technology for the 21st Century Act (FIT21), following its passage through the House of Representatives.
This bill aims to delineate the SEC’s responsibilities regarding digital assets and offers a pathway for the Commodity Futures Trading Commission to regulate many tokens as commodities.
