4 months ago
According to a caller Bernstein report, the support of a spot Ethereum (ETH) exchange-traded money (ETF) successful the US whitethorn found a precedent for classifying Solana (SOL) arsenic a commodity.
The classification of cryptocurrencies arsenic either securities oregon commodities holds important implications. Commodity classification facilitates ETF applications and approvals, portion information classification subjects assets to stricter SEC oversight.
‘Big three’
The support of spot Ethereum ETFs would mean the SEC views the second-largest crypto arsenic a commodity, mounting a captious precedent. This would people the archetypal clip a non-Bitcoin integer plus receives specified a classification, raising expectations for Solana to travel suit.
Ether’s terms accrued earlier this week aft Bloomberg analysts raised the likelihood of SEC support for spot Ether ETFs to 75% from 25%, pursuing reports that the regulator requested updates to filings. The SEC’s last decisions connected these applications are expected aboriginal today, connected May 23, pursuing aggregate delays.
Bernstein’s study noted that Bitcoin’s 75% rally pursuing the support of spot ETFs suggests akin terms enactment for Ethereum aft support of spot ETFs.
However, if the SEC rejects the applications, Ethereum could acquisition important volatility and a steep terms correction successful the coming days, according to CryptoQuant research.
Crypto capitalist Brian Kelly expressed akin optimistic views astir Solana and the imaginable regulatory support of Ethereum ETF products during a caller CNBC interview. He speculated that SOL could beryllium the adjacent altcoin to person ETF approval, highlighting it arsenic a apt campaigner for concern managers to propulsion forward.
Kelly emphasized that Bitcoin, Ethereum, and Solana are the “big three” integer assets that mightiness spot ETF products approved successful this cycle. He noted the occurrence of Bitcoin ETFs, which person collectively amassed a important magnitude of Bitcoin, valued astatine astir $58 billion, indicating beardown request for regulated crypto concern products.
However, Kelly besides acknowledged immoderate skepticism wrong the Solana community. He mentioned that Solana’s archetypal coin offering (ICO) and its classification arsenic a information by the SEC could airs challenges for ETF approval.
Despite this, Kelly remained optimistic that the shifting regulatory and governmental scenery mightiness summation the chances of Solana ETF support if Ethereum ETFs person the greenish light.
Shifting governmental landscape
The Bernstein report, released up of the SEC’s last decisions connected ETH ETF applications, besides highlighted a imaginable displacement successful the Biden administration’s stance connected cryptocurrencies based connected caller developments.
Additionally, the study noted that if Trump is reelected, his adminitration is apt to further enactment the crypto manufacture done legislative and regulatory measures. According to the report:
“Should Trump get elected, crypto could spot important legislative and bureau support, starring to long-lasting structural changes successful crypto fiscal integration.”
The imaginable support of Solana ETFs comes amid a changing regulatory situation and increasing bipartisan support for crypto. The caller transition of the Financial Innovation and Technology for the 21st Century (FIT21) Act by the House, with important Democratic backing, indicates a imaginable governmental shift.
Lawyer Jake Chervinsky described the bill’s transition arsenic a “vote of nary confidence” successful the SEC’s existent attack to crypto regulation, suggesting governmental consequences for maintaining an anti-crypto stance.
Regulatory support of Solana ETFs would people a important milestone for the crypto industry, signaling mainstream acceptance and integration. However, with Ether ETFs inactive awaiting approval, the manufacture remains cautiously optimistic astir the future.
The station Ethereum ETF support volition acceptable signifier for Solana ETF, commodity classification appeared archetypal connected CryptoSlate.
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