By NewsBlogger The SEC’s recent approval of Ethereum Exchange-Traded Funds (ETFs) has led to increased volatility in the cryptocurrency market. Bitcoin experiencing fluctuations and a significant drop in the total market cap, sparking discussions and legal battles surrounding the classification of digital assets.
At a glance
- The SEC approved eight Ethereum ETFs, impacting the cryptocurrency market.
- Bitcoin experienced volatility, dropping after the SEC’s decision.
- The total crypto market cap decreased by over $100 billion.
- Industry experts have mixed reactions to the SEC’s approval of Ethereum ETFs.
- The approval has raised questions about the SEC’s classification of crypto assets and ongoing legal battles.
The details
The Securities and Exchange Commission (SEC) has recently made significant decisions regarding the approval of Ethereum Exchange-Traded Funds (ETFs), which have had a major impact on the cryptocurrency market.
Crypto Market Volatility:
– The crypto market has experienced enhanced volatility in the past 24 hours, with the largest cryptocurrencies turning red after an initial surge.
Bitcoin (BTC) saw fluctuations. After a quiet weekend, it cooled at around $67,000, then soared to nearly $72,000 before gradually losing value.
– BTC slumped to under $68,000 before the SEC’s decision to greenlight spot Ethereum ETFs.
– Following the SEC’s approval of eight Ethereum ETFs, BTC went down to $66,400, shot up by two grand, and struggled below $67,000.
– The total crypto market cap lost over $100 billion since yesterday, decreasing to $2.617 trillion.
BTC’s market cap is now at $1.310 trillion, with dominance over altcoins at 50.2%.
SEC Approval of Ethereum ETFs:
– On May 23, the SEC approved the launch of eight Ethereum ETFs, viewing Ethereum as a commodity rather than a security.
– The regulator also approved 19b-4 applications from various companies to issue spot Ethereum ETFs, signaling a shift in their approach to digital assets.
– Industry experts and executives have been discussing the implications of this decision, with mixed reactions.
– ConsenSys welcomed the approval as a positive step but criticized the SEC’s ad hoc approach to digital assets, highlighting ongoing legal battles.
– Financial services lawyer James Murphy believes the SEC’s determination that ETH is a commodity could impact their crypto cases, questioning the classification of tokens like SOL and ADA.
– Crypto lawyer Jake Chervinsky is optimistic about a potential pro-crypto pivot following the ETH ETF approval, noting the market reaction.
Legal Battles and Implications:
– The SEC’s approval of Ethereum ETFs has raised questions about their classification of crypto assets and their ongoing legal battles against American digital asset entities.
– Assets like ETH, SOL, ADA, and XRP are considered securities by the SEC, leading to legal disputes and uncertainty in the market.
– U.S. District Judge Katherine Polk Failla’s ruling in the SEC vs. Coinbase case applied the SEC’s ecosystem argument, setting a precedent for future cases.
– Coinbase is expected to file a reply brief on its petition to certify an interlocutory appeal, with other crypto firms potentially following a similar approach in their cases against the SEC.
Overall, the approval of Ethereum ETFs by the SEC has sparked a mix of reactions and discussions within the cryptocurrency community, reshaping the landscape of digital asset regulation and market dynamics.
The market continues to observe fluctuations and reactions to these developments, with implications for various stakeholders in the industry.
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| cryptopotato.com |
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| – Crypto market susceptible to ETF approvals – Enhanced volatility in the sector in the past 24 hours – Largest cryptocurrencies turned red after initial hype settled – BTC calmed at around $67,000 after quiet weekend – Reports emerged that SEC could greenlight spot Ethereum ETF – BTC soared to nearly $72,000, then gradually lost value – BTC slumped to under $68,000 before SEC’s decision – Regulator approved eight Ethereum ETFs, BTC went down to $66,400 – BTC shot up by two grand, then struggled below $67,000 – BTC market cap down to $1.310 trillion, dominance over alts at 50.2% – ETH price impacted the most by ETF developments – ETH skyrocketed to over $3,900, now sits at $3,655 – Larger-cap alts like Solana, Dogecoin, Cardano, etc. down by 5-8% – Total crypto market cap lost over $100 billion since yesterday, down to $2.617 trillion |
| cryptopotato.com |
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| – Industry experts and executives have been discussing the implications of the SEC’s approval of spot Ether ETFs on May 23. – The SEC now views Ethereum as a commodity and not a security. – The regulator approved 19b-4 applications from various companies to issue spot Ethereum ETFs. – Not everyone is convinced that the SEC’s approval of Ethereum ETFs means its war on crypto is ending soon. – ConsenSys welcomes the decision as a step in the right direction but criticizes the SEC’s ad hoc approach to digital assets. – ConsenSys is involved in legal battles with the SEC over unregistered securities. – Financial services lawyer James Murphy believes the SEC is in trouble with some of its crypto cases due to its determination that ETH is a commodity. – The SEC has argued that crypto tokens operating within an ecosystem are securities, but now says ETH is a commodity. – The SEC did not clarify ETH in its approval orders for ETFs. – ETF Store President Nate Geraci noted the lack of statements from SEC Commissioners on spot ETH ETFs. – Crypto lawyer Jake Chervinsky is optimistic about a pro-crypto pivot based on the ETH ETF approval. – ETH prices spiked to $3,933 when the news broke but returned to previous levels shortly after. |
| cryptopotato.com |
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| – Cryptocurrency lawyer James Murphy, known as MetaLawMan, believes the SEC is in trouble following its approval of Ethereum ETFs – The SEC approved the launch of eight Ethereum ETFs from asset managers on May 23 – The odds of the approvals were initially at 25% but increased to 75% due to a surprising turn of events – The SEC has initiated legal battles against American digital asset entities for offering unregistered securities – Assets like ETH, SOL, ADA, and XRP are classified as securities by the SEC – U.S. District Judge Katherine Polk Failla applied the SEC’s ecosystem argument in her ruling in the SEC vs. Coinbase case – Murphy believes the SEC will have a hard time explaining how ETH is a commodity while similar ecosystem tokens like SOL and ADA are not – Coinbase is expected to file a reply brief on its petition to certify an interlocutory appeal soon – Other crypto firms with pending cases against the SEC could use the same approach as Coinbase |
