Michael Saylor, the executive chair of MicroStrategy, has made a prediction that the United States Securities and Exchange Commission (SEC) will reject the listing and trading of spot Ether (ETH) exchange-traded funds (ETFs). Speaking at MicroStrategy’s Bitcoin For Corporations conference, Saylor stated that the SEC would classify ETH as a crypto asset security falling under its regulatory jurisdiction, rather than a commodity overseen by the U.S. Commodity Futures Trading Commission. Saylor also suggested that other tokens, including BNB, SOL, XRP, and ADA, could face similar treatment by the SEC, labeling them as “crypto asset securities” that are unregistered. He further stated that these tokens would not be accepted by Wall Street or mainstream institutional investors as crypto assets. Saylor’s remarks come amid concerns from experts about the potential approval of spot Ether ETFs on U.S. exchanges. The first significant deadlines for ETF applications from VanEck and ARK Invest are scheduled for May 23 and May 24, respectively. A lawsuit filed by Consensys alleged that the SEC began investigating Ether as a security as early as March 2023, although SEC Chair Gary Gensler has avoided directly addressing whether Ether is a security. Saylor, a vocal supporter of Bitcoin, has played a significant role in MicroStrategy’s acquisition of the cryptocurrency as a reserve asset. As of April 30, the company held 214,400 BTC, valued at over $13 billion.
Michael Saylor reports that the SEC will designate Ether as a security and reject proposals for spot Ether ETFs.