According to Seyffart, the SEC’s silence on ether suggests implicit recognition of the cryptocurrency as a commodity. This is further supported by the agency’s approval of an exchange-traded fund (ETF) for ether futures. If ether is eventually declared a security, it would require the delisting of all ether futures that the SEC has already greenlit for launch.
“The SEC’s stance on Ether would not only pit it against the crypto industry but also the US Commodity Futures Trading Commission (CFTC), which regulates futures contracts,” Seyffart highlighted. He further predicted that SEC Chairman Gary Gensler, by 2024, would openly acknowledge Bitcoin as a commodity while remaining silent on ether, reinforcing the notion that it is not a security.
Gensler has consistently maintained that existing laws provide sufficient grounds for the SEC to take enforcement action against cryptocurrency companies. He believes that market participants should adhere to the same rules that govern traditional financial institutions.