The SEC cannot support an ETH Futures ETF while also claiming that ETH is a novel intrinsic “crypto asset security” that is unregistered, according to Adam Cochran, a partner at Cinneamhain Ventures.
The crypto analyst suggested that a futures ETF couldn’t be created using an unregistered security. He claims that for this to be the case, the SEC must concede that ETH is a commodity or a currency and return to exclusively challenging the transactional aspects of it under Howey. Therefore, Cochran continued, the SEC is implicitly admitting that Ethereum itself is not a security by allowing an Ethereum futures ETF. despite how it was sold, despite the fact that it served as proof of ownership, and despite its intended usage. A *BIG* win, that.
Cochran also thinks that Ripple can use this action by the SEC as evidence in the SEC v. Ripple lawsuit, demonstrating that there is unquestionably a difference between the asset itself and its sales. The expert made it clear that this does not necessarily imply that all crypto assets are not securities. “But,” he continued, “it does mean the SEC conceding that there is a line somewhere, and now we have to litigate over where the line is, rather than if the line exists.”
In response to Cochran’s analysis of the scenario, pro-XRP attorney John Deaton stated that Cochran is entirely correct in his assessment. According to Deaton, the SEC would be more amenable to any prospective appeal involving XRP if it approved an ETH Futures ETF.
Related news: Earlier this week, Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen submitted their opposition to the SEC’s request for a stay of all proceedings awaiting appeal as well as its desire to launch an interlocutory appeal.
