Ethereum, the cryptocurrency market’s second most popular cryptocurrency, continues to rise despite recent increased pressure from the U.S. Securities and Exchange Commission (SEC) and uncertainty for spot ETF approval. This can be interpreted as an indicator of Ethereum’s long-term potential and its trust among investors.
Ethereum responds to increasing pressure from the SEC with a rally
Ethereum has been acting against increasing pressure from the US SEC lately. It also continues to rise despite the uncertainty for spot ETF approval. cryptokoin.com As we reported, the SEC announced that it launched an investigation into the Switzerland-based Ethereum Foundation on March 20. This investigation has reignited debate about whether Ethereum is a “security” or a “commodity.”
The SEC’s attitude towards giant financial institutions such as VanEck, BlackRock and Fidelity, which want to issue a spot Ethereum ETF, is also extremely cold. This reduced the likelihood of an ETF approval in May. Bloomberg ETF analysts recently downgraded the probability of spot Ethereum ETF approval from 70% to 30%.
Reaction from Coinbase
Coinbase’s chief legal officer, Paul Grewal, reacted to the SEC’s move, stating that Ethereum is a “commodity.” He also argued that it should be evaluated in the same way as Bitcoin. Grewal also reminded that the SEC has acknowledged in the past that Ethereum is not a “security.” Despite all these negative developments, the Ethereum price increased by 15% in the last 24 hours. Thus, it reached $3,551. This rise can be interpreted as Ethereum’s “I’m still here” message.
Additionally, Grewal said, “The SEC does not have a good reason to reject ETH ETP applications.” He pointed to SEC Chairman Gary Gensler’s statements once before Congress. He noted that Gensler testified that Ether was not a security at the time. Travis Kling, chief investment officer of Ikigai Asset Management, made critical statements in a post dated March 20. “This now clearly feels like a coordinated attack on ETH,” he said. “I wonder what will happen.” he added.
Members of the House of Representatives also reacted
Fox Business reporter Eleanor Terrett even suggested that the subpoenas might explain why the securities regulator has been reluctant to engage with potential spot Ether ETF issuers. The regulator’s apparent lack of involvement is striking. This shortcoming led Bloomberg ETF analysts Eric Balchunas and James Seyffart to downgrade their ETF prospects in particular. Meanwhile, House Financial Services Committee chairman Patrick McHenry and others also spoke on the issue. They said this would go against the regulator’s previous actions. Thus, they shared their disapproval of the reported move.
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