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HomeNewsSEC Approvals and Consensys Lawsuit: What's Next for Ethereum?

SEC Approvals and Consensys Lawsuit: What’s Next for Ethereum?

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  • 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.

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.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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