Justified or Overreaching? Examining Ripple to Ethereum
  • Recent crackdowns on crypto-mixing platforms like Tornado Cash have raised concerns about potential overreach in the SEC’s approach to crypto regulation.
  • Additionally, the SEC’s likely rejection of the Spot Ethereum ETF further indicates the SEC’s regulatory stance, as issuers expect it to be rejected despite BlackRock and Grayscale’s efforts. I am.

The US Securities and Exchange Commission (SEC) has constantly expanded its influence in the crypto regulatory market since the Ripple incident. Securities regulators have sued some of the top crypto companies, including Coinbase and Binance. In a recent crackdown, the SEC is going after crypto-mixing platforms like Tornado Cash. This has led everyone to wonder if the SEC is going too far with cryptocurrencies.

It is noteworthy that there is a lack of consistency in legal rulings regarding the classification of tokens as investment contracts. An example of this is evident in the Ripple case, where Judges Torres and Judge Faila issued different rulings, creating uncertainty over the legal status of tokens.

Amid this uncertainty, crypto news flashes after a federal judge’s sanction and strong criticism of the Wall Street regulator for what it deems a “gross abuse” of power in a cryptocurrency-related case: It was reported that two people had resigned.

Michael Welsh and Joseph Watkins, who were the lead attorneys in the case against DEBT Box, resigned from their positions at the SEC this month.Cryptocurrency lawyer Jake Chevinsky talks about his resignation Said:

“I think it will cause irreparable damage to the SEC’s reputation. Many people in the cryptocurrency industry are celebrating this order because I think it will make all of us feel seen. , I completely understand that.”

Will the SEC’s excesses extend to Ethereum?

As reported by Crypto News Flash, similar to Ripple, the SEC is also targeting Ethereum (ETH) to bring it under securities laws. The latest report also suggests that the US SEC is likely to deny approval for the Spot Ethereum ETF, which has an expiration date of May 23 next month.

Sources have indicated that the U.S. Securities and Exchange Commission (SEC) is likely to deny approval of the long-awaited Spot Ethereum ETF. Following a recent meeting with securities regulators, the issuer of the Spot Ether ETF, along with other companies, expects its application to be rejected next month. report Reuters reported on April 25th.

Applicants include prominent companies such as BlackRock, Grayscale, VanEck, and Ark Invest, which will mirror the structure of the Spot Bitcoin ETF and track the spot price of Ethereum (ETH). Seeking approval to list the ETF. Also, as reported by Crypto News Flash, VanEck and Ark Invest are scheduled to receive SEC decisions on May 23 and May 24, respectively.

Insiders familiar with the discussions revealed that the SEC and its staff have shown little interest in the Spot Ether ETF concept and its potential. Participants characterized the conversation as one-sided, suggesting a lack of enthusiasm on the part of the regulator.

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