According to one Crypto X community member, the status of Ethereum “could be an issue that comes up at day 90 for the spot ETH 19b-4 filings.” The SEC will then have to state the reasons for which it is contemplating disapproval (if it actually gets to this point) in order to institute proceedings to determine whether to approve or disapprove a spot ETH ETF.
Nevertheless, Seyffart says “If Ether is a security, then the CME futures likely need to be delisted and so do the Ether futures ETFs.” Such an outcome would spur turbulence in the regulatory corridors, putting the SEC against the CFTC and reducing the odds of a spot Ether ETF approval.
In Seyffart’s option, this is because the CFTC has considered Ethereum a commodity for years, subject to its regulatory jurisdiction. In the same way, Ether futures have been listed for years on CFTC-regulated exchanges, while cleared Ether swaps have been listed for trading on CFTC-regulated swap execution facilities that are not registered with the SEC without being considered “mixed swaps” subject to joint CFTC and SEC jurisdiction.
In retrospect, if the SEC were willing to go down a route where they are at odds with the CFTC, then they would not have allowed Ethereum futures ETFs to list on SEC-regulated exchanges.
Nevertheless, Seyffart says “If Ether is a security, then the CME futures likely need to be delisted and so do the Ether futures ETFs.” Such an outcome would spur turbulence in the regulatory corridors, putting the SEC against the CFTC and reducing the odds of a spot Ether ETF approval.
In Seyffart’s option, this is because the CFTC has considered Ethereum a commodity for years, subject to its regulatory jurisdiction. In the same way, Ether futures have been listed for years on CFTC-regulated exchanges, while cleared Ether swaps have been listed for trading on CFTC-regulated swap execution facilities that are not registered with the SEC without being considered “mixed swaps” subject to joint CFTC and SEC jurisdiction.
In retrospect, if the SEC were willing to go down a route where they are at odds with the CFTC, then they would not have allowed Ethereum futures ETFs to list on SEC-regulated exchanges.
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