According to Adam Cochran’s analysis, the SEC cannot claim that ETH is an unregistered securities while yet approving an ETH Futures ETF.
According to him, for the SEC to greenlight an ETH Futures ETF, it must first be shown that ETH is a commodity or money.
John Deaton, an attorney, has said that any pending XRP appeal would benefit from the SEC’s approval of an ETH Futures ETF.
Cinneamhain Ventures partner Adam Cochran recently tweeted that the SEC cannot claim that ETH is an unregistered new intrinsic “crypto asset security” and approve an ETH Futures ETF at the same time.
“You couldn’t have a futures ETF made out of an unregistered security,” the crypto expert claimed. For this to be the case, the SEC, in his view, must acknowledge that ETH is a commodity or money and return to targeting solely the transactional aspect of it under Howey. Cochran continued:
The SEC’s approval of a futures ETF for Ethereum effectively acknowledges that Ethereum is not a security. Despite the fact that it served as evidence of stake and was intended for a specific purpose, it has been rendered useless. That’s a huge triumph.
Cochran also thinks that Ripple may use the SEC’s action in the SEC vs. Ripple case to demonstrate that there is a material difference between the asset and its sales. This does not, however, imply that all crypto assets are not securities, as the expert pointed out. “But,” he added, “it does mean that the SEC is admitting that there is a line somewhere, and now we have to fight over where the line is instead of if the line exists.”
John Deaton, an attorney who supports XRP, responded to Cochran’s analysis by stating, “He is absolutely correct here.” Deaton said that the SEC would look favorably on any XRP appeal if it approved an ETH Futures ETF.
This week, Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen responded to the SEC’s request for an interlocutory appeal and a suspension of all proceedings awaiting appeal by filing their own objection.
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