Galaxy Digital’s Alex Thorn says that the SEC could classify staked Ethereum in an attempt to find a way to approve a spot Ethereum ETF.
Securities and Exchange Commission of the United States (SECIt is possible that the approval for spot Ethereum ETFs (ETFsAccording to Galaxy Digital Alex Thorn, head of Research
You can also find out more about the following: an X post Thorn speculated, on May 21, that the SEC may draw a fine distinction between Ethereum and staked Ethereum. This could lead to the SEC classifying the latter cryptocurrency as a securities.
“If the speculation about a 180 from SEC on the Ethereum ETFs is true, I would guess they try to thread a needle between ‘ETH’ NOT being a security and ‘staked ETH’ (or even more flimsily, ‘staking as a service ETH’) as BEING a security.”
Alex Thorn
This could be a significant difference for Ethereum spot ETFs that the SEC is reluctant to approve.
Thorn says that the SEC will be aligned with its ongoing investigations and legal cases, which would allow it to adopt Ethereum ETFs without changing any of their previous positions or arguments. Thorn says that the new approach may also impose specific restrictions on Ethereum spot ETFs.
“In this case and perhaps for other reasons, you would expect SEC to prohibit the ETFs from staking the ETH they hold.”
Alex Thorn
The SEC can navigate the complicated regulatory landscape by distinguishing between ETH (staked ETH) and other altcoins, while still maintaining a tight regulatory framework for staked assets. The SEC has not yet clarified how it will handle tokenized Ethereum or Bitcoin used for layer-2 solutions, including lending.
Ethereum surged News that SEC may approve spot ETH-ETFs sparked a rise of over 17%, in spite of the earlier market consensus that it would not.
Bloomberg’s senior analyst Eric Balchunas said earlier that the odds for spot Ethereum ETF approval are low. “slim to none,” The SEC made a U turn on 20 May. He raised his approval rate from 25% to 70% in an X-post, implying the SEC was under political pressure. Their previous stance had shown little engagement with ETF applications.
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Source: crypto.news
