- Concerns have been raised about SEC overreach regarding crypto regulations following the recent crackdown of crypto mixing platforms, such as Tornado Cash.
- Also, the SEC will likely reject Ethereum spot ETFs. This is despite BlackRock’s and Grayscale’s efforts.
Since its Ripple case, the U.S. Securities and Exchange Commission has expanded its regulatory reach into crypto. The Securities and Exchange Commission has filed suits against top crypto firms such as Binance, Coinbase, etc. SEC crackdown on crypto mixing platforms Tornado cash is a result of a recent SEC crackdown.
The lack of consistency among legal rulings on the classification of investment contracts as tokens is noteworthy. This is apparent in the Ripple Case, where Judge Torres issued different rulings. As a result, there was uncertainty regarding the legal status for tokens.
This uncertainty is a concern. Crypto News Flash reported Two SEC lawyers resigned after a judge sanctioned and strongly criticized the Wall Street regulator. “gross abuse” In a case involving cryptography, the power of the court was questioned.
Michael Welsh and Joseph Watkins resigned from the SEC in this month after being lead attorneys on a DEBT Box case. Crypto lawyer Jake Chevinsky spoke about this resignation. said:
“I think it will work an irreparable damage to the SEC’s reputation. A lot of folks in the crypto industry have been celebrating this order and, I totally understand that because I think it makes us all feel seen.”
Can the SEC overreach to Ethereum?
Ethereum (ETH) is being similarly targeted by SEC, in order to bring it into compliance with securities laws. reported by Crypto News Flash. According to the latest report, it is likely that the U.S. SEC will reject approval for the Ethereum ETF spot. The final date was in next Month in May 23.
According to sources familiar with the issue, the U.S. Securities and Exchange Commission is expected to deny the approval for spot Ethereum ETFs. After recent meetings with securities regulators, the issuers and other firms of spot Ether ETFS anticipate denials. next As of the month reported Reuters published a report on the 25th of April.
Among those who have applied are BlackRock, Grayscale and Ark Invest. They want to be able to offer ETFs that track the spot price of Ethereum (ETH), similar in structure with spot Bitcoin ETFs. According to the SEC, VanEck, Ark Invest, and Grayscale are all scheduled to get the SEC decision by May 23, and May 24 respectively. Crypto News Flash report.
The SEC, according to insiders who were present at the discussion, showed little enthusiasm for the idea of spot Ether exchange-traded funds (ETFs) and their potential. Participants defined the conversation as one-sided. This indicated a lack in enthusiasm by the regulators.
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Source: www.crypto-news-flash.com
