In the latest ETH ETF news, a top Grayscale cryptocurrency lawyer said a Spot Ethereum ETF is likely to be approved even amid SEC silence over Ethereum (ETH) regulation.
Craig Salm, the chief legal officer of Grayscale, a cryptocurrency company that offers a variety of investment products including Ethereum, downplayed concerns over a lack of communication from the U.S. Securities and Exchange Commission (SEC) regarding the Spot Ethereum exchange-traded fund (ETF). . .
His comments came amid concerns after the Ethereum Foundation, a nonprofit group promoting the adoption of the network's solutions, received a subpoena from anonymous state authorities.
In addition to this, observers believe that uncertainty surrounding Ethereum's regulatory status could still hinder the approval process.
Will Spot Ethereum ETF history repeat itself?
In his post on X, Salm acknowledged the ongoing chatter surrounding the Spot Ethereum ETF and the authorities' apparent radio silence.
Despite this, the lawyer remains optimistic, pointing out similarities to the approval process for Spot Bitcoin ETFs. Notably, Mr. Salm said that he is working closely with strict regulators and Spot Bitcoin ETF applicants, including Grayscale, Fidelity, and Ark, to get the product's historic green light in mid-January 2024. He emphasized constructive engagement between the parties.
Counsel revealed that discussions focused on key details such as creation or redemption procedures and storage arrangements.
By law, the SEC oversees products such as spot Bitcoin and Ethereum ETFs. But basically, a custodian like Coinbase Custody needs to exist to store the underlying coins that back up all the stocks.
Since Spot Bitcoin and Ethereum ETFs share similar fundamental features, Salm believes the groundwork has already been laid for approval, even with the US SEC's recent silence.
ETH ETF optimism dashed by regulatory headwinds
Despite this optimistic outlook, lawyers acknowledged potential obstacles, particularly the recent news that state authorities have subpoenaed the Ethereum Foundation. It has been a source of chatter and concern.
The debate over whether ETH is a security or a commodity continues and remains unresolved. Gary Gensler, the agency's chairman, has not disclosed the agency's position on the coin. The US SEC stated that BTC is a commodity before approving the Spot Bitcoin ETF. This was not the case with ETH.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is for informational purposes only and does not constitute investment advice. You could lose all your capital.
