While the SEC continues to increase its pressure on the cryptocurrency industry, its latest target was the US-based cryptocurrency platform Robinhood.
At this point it was revealed that the SEC sent a Wells Notice to Robinhood in early May.
While discussing the possible effects of the SEC’s Wells Notice sent to Robinhood on the cryptocurrency industry, the latest assessment came from JP Morgan.
SEC Will Have to Approve Ethereum ETFs!
The SEC’s Wells Notice to Robinhood Crypto is unlikely to block final approval of spot Ethereum ETFs, JP Morgan analysts said, The Block reported.
JP Morgan analysts led by Nikolaos Panigirtzoglou said that the SEC will eventually make a decision on ETH, but that the SEC will not classify ETH as a security or commodity but in another ‘intermediate’ category.
Analysts also noted that it would not be a huge disappointment for the markets if the SEC rejected Ethereum ETFs in May, and the markets were not expecting approval this month anyway.
“In our view, the Wells notice does not appear to preclude the eventual approval of the spot Ethereum ETF by the SEC.
ETFs may not be approved as soon as May, however. If the SEC refuses to approve spot Ethereum ETFs, it will likely face litigation and eventually lose and be forced to approve.”
SEC Wells Notice Didn’t Directly Say Ethereum Is a Security!
JP Morgan analysts said the SEC did not explicitly state, nor imply, that Ethereum was not a security in its Wells Notice to Robinhood.
At this point, analysts pointed out that Robinhood offers trading services for 13 altcoins other than Bitcoin (BTC) and Ethereum and said:
“We do not believe that the SEC’s notice to Robinhood implied that ETH was a security.
Because Robinhood not only facilitates trading on Bitcoin and Ethereum, but also 13 other tokens.
Ultimately, we think Ethereum’s status will likely be determined by legislation and the court. “We think there could ultimately be a ‘middle’ category for Ethereum, neither a commodity nor a security, but something in between.”
*This is not investment advice.
