SEC Might Be Backing Down on Ethereum: Bloomberg Analyst

• Crypto journalist Laura Shin’s Unchained Podcast featured Bloomberg analyst James Seyffart.
• Seyffart discussed a potential shift in the SEC’s stance towards Ethereum.
• Seyffart highlighted the SEC’s recent approval of Ethereum futures exchange-traded funds.

In a recent episode of crypto journalist Laura Shin’s Unchained Podcast, Bloomberg analyst James Seyffart discussed a noteworthy development suggesting a potential shift in the U.S. Securities and Exchange Commission’s (SEC) stance towards Ethereum. 

Seyffart shared his perspective on the matter, pointing to the SEC’s recent approval of Ethereum futures exchange-traded funds (ETFs). This move, according to Seyffart, signals a subtle acknowledgment by the SEC that Ethereum might be considered a commodity rather than a security.

Expressing his view, Seyffart emphasized that the SEC has implicitly accepted Ethereum as a commodity, especially with the approval of Ethereum futures ETFs. He noted that if the SEC were to reverse its stance and classify Ethereum as a security, it would have significant repercussions.

Seyffart mentioned that reversing the stance could lead to the delisting of Ethereum futures contracts and ETFs. This, in turn, would not only cause the SEC to fight against the industry but also against its sister agency, the Commodity Futures Trading Commission (CFTC).

While Seyffart did not provide specific odds, he suggested that the likelihood of Ethereum being classified as a commodity is high. He also estimated that it could happen by 2024. 

SEC Chairman Gary Gensler, according to Seyffart, acknowledges Bitcoin as a commodity while staying relatively silent on Ethereum, indirectly signaling a departure from treating it as a security. Seyffart suggests that the SEC may be choosing not to expend energy on a prolonged battle over Ethereum’s classification.