SEC Delays Ruling on Fidelity’s Spot Ethereum ETF
The United States Securities and Exchange Commission (SEC) has announced that it will postpone its decision on Fidelity’s spot Ethereum exchange-traded fund (ETF) until March 5th. The SEC filing states that the commission needs more time to consider the proposed rule change and the issues raised. This delay comes shortly after the SEC approved a spot Bitcoin ETF, which is expected to boost mainstream adoption of cryptocurrency in the US.
Coinbase Faces Off Against the SEC in Court
The SEC’s decision to postpone the ruling on Fidelity’s ETF coincides with its legal battle against Coinbase. The agency has accused Coinbase of selling unregistered securities on its platform. However, Coinbase has strongly contested these allegations, arguing that none of its tokens should be classified as securities. The judge overseeing the case has not yet made a decision due to concerns about regulatory overreach.
SEC Criticized for Cryptocurrency Enforcement Approach
The SEC is facing criticism for its strict enforcement approach towards cryptocurrencies. Senator Cynthia Lummis has claimed that the agency’s attempt to classify cryptocurrencies as securities goes beyond its authority and interferes with Congress’s lawmaking. Ripple CEO Brad Garlinghouse also expressed his dissatisfaction with the SEC’s leadership, calling it a political liability.
Hot Take: Uncertainty Surrounding Ethereum’s Asset Class Designation
The SEC’s postponement of Fidelity’s Spot Ethereum ETF ruling adds to the uncertainty surrounding the regulatory classification of Ethereum. It remains to be seen how the SEC will designate Ethereum as an asset class in the future.
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