SEC Could Deem Staked ETH as Securities, But Not ETH Itself
CryptoNewsTerminal Staff21 May, 2024
SEC Could Deem Staked ETH as Securities, But Not ETH Itself
Alex Thorn, head of research at Galaxy, recently tweeted that the SEC's rumored shift in stance regarding Ethereum (ETH) spot ETFs could indicate a conclusion that: 1. ETH itself is not a security 2. Staking ETH is a security This distinction would allow the SEC to approve an ETH spot ETF without contradicting its previous stance. However, the ETF would likely be prohibited from staking any ETH it holds. This potential development highlights the ongoing regulatory uncertainty surrounding cryptocurrencies and their various use cases. As the industry continues to evolve, it remains to be seen how regulators will classify different aspects of crypto technology and how these classifications will impact the market.
