Brian Quintenz called the US Securities and Exchange Commission's (SEC) approach to ether illegal. He explained that the regulator had previously approved ether futures ETFs, thereby implicitly recognizing that ether is not a security. Therefore, the department cannot extend its powers to this altcoin, says Quintenz.
According to him, the approval of ether futures ETFs after the Ethereum network switched to the new Proof-of-Stake algorithm suggests that the SEC did not consider ether a security. If the agency had any doubts about regulating airwaves, it would not have approved this investment product. It turns out that if ether is considered a security, then futures contracts regulated by the CFTC are illegal instruments.
“An asset is considered a commodity rather than a security if there is a CFTC-regulated futures or swap contract based on it,” Quintenz explained.
The former CFTC commissioner criticized the SEC for causing confusion and harm to the public by refusing to acknowledge these facts. He is concerned that the SEC is delaying ruling on applications from companies wanting to launch spot ETFs on ether.
Previously, Quintenz had already criticized the SEC for the fact that the regulator is pursuing cryptocurrency companies in court and applying harsh measures to them, thereby destroying the crypto industry in the United States.
Source: Bits
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