In the ongoing saga of cryptocurrency regulation, Alex Thorn, Head of Research at Galaxy Research, has sparked fresh debate. Thorn raises a provocative question: Will the SEC finally classify staked Ether as a security?
His analysis comes amid rising speculation that the SEC might soon approve Ethereum ETFs.
Thorn hypothesizes that the SEC could navigate a fine line. They might approve an Ethereum ETF while still deeming staked ETH as a security. A move that Thorn describes as threading the needle. The implications for the crypto market? Potentially significant.
The SEC’s historical stance on Ether has been contentious. Recent court filings and reports suggest the agency has long viewed Ether as an unregistered security. Yet, the possible pivot to approve an Ethereum ETF throws a wrench into their established narrative.
Community reactions to Thorn’s analysis were mixed. Some worry about the liquidity issues that staking within an ETF might pose.
Thorn’s response?
Not definitive, but he notes that lending ETF collateral could serve as a precedent.
European exchange-traded products already offer staking services, Thorn adds. So, it’s not entirely uncharted territory. But will the SEC see it that way? That’s the million-dollar question.
In a market where every regulatory hint can swing prices, Thorn’s insights add a layer of complexity. If the SEC does take a hard stance on staked ETH, it could reshape the landscape. For now, all eyes are on the SEC’s next move.