- Adam Cochran has argued that the SEC cannot argue that ETH is a security that is unregistered, and approve an ETH Futures ETF simultaneously.
- The SEC, according to him, must accept the state that ETH is a commodity or a currency to approve an ETH Futures ETF.
- Attorney John Deaton asserts that if the SEC approves an ETH Futures ETF, it would also be favorable to any potential XRP appeal.
Adam Cochran, a partner at Cinneamhain Ventures, has stated in a recent Twitter post that the SEC cannot simultaneously argue that ETH is a new intrinsic “crypto asset security” that is unregistered, and approve an ETH Futures ETF.
“You couldn’t have a futures ETF made out of an unregistered security,” argued the crypto analyst. The SEC, according to him, must accept the state that ETH is a commodity or a currency for this to be the case and revert to only attacking the transactional matter of it under Howey. Cochran added:
So if the SEC is approving an Ethereum futures ETF they are intrinsically conceding that Ethereum itself is not a security. Despite the way it was sold, despite it being proof of stake, despite its purpose and use. That’s a *BIG* win.
Cochran also believes that this move from the SEC is something that Ripple can bring up in the SEC vs. Ripple case, showing that there is clearly a matter of distinction between the asset itself and its sales. However, the analyst clarified that it does not de facto mean that all crypto assets are non-securities. “But,” he added, “it does mean the SEC conceding that there is a line somewhere, and now we have to litigate over where the line is, rather than if the line exists.”
Pro-XRP lawyer John Deaton commented on Cochran’s interpretation of the situation saying that he is a hundred percent correct here. Deaton asserted that if the SEC approves an ETH Futures ETF, then it would also be favorable to any potential appeal involving XRP.
In related news, earlier this week, Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen filed their opposition to the SEC’s request to file an interlocutory appeal and for a stay on all proceedings pending appeal.
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