- Bitcoin supporter Michael Saylor claims Ethereum is a security, reigniting the long-standing debate over Ethereum’s classification.
- The Securities and Exchange Commission (SEC) insists Ethereum is a security, while Ethereum development company Consensys argues otherwise in a recent lawsuit against the SEC.
- Saylor predicts the SEC will classify Ethereum and other altcoins as securities, rejecting spot Ethereum ETFs and hindering their acceptance by mainstream institutional investors.
Bitcoin advocate Michael Saylor stirs the crypto community with his claim that Ethereum is a security, not a commodity, predicting a regulatory clampdown on Ethereum and other altcoins by the SEC.
Saylor’s Stance on Ethereum’s Classification
Known for his support of Bitcoin, MicroStrategy founder Michael Saylor recently weighed in on the ongoing debate about Ethereum’s classification. Speaking at the MicroStrategy World 2024 conference, Saylor asserted that Ethereum, the largest altcoin, should be considered a security rather than a commodity.
SEC’s Potential Crackdown on Altcoins
Saylor went a step further, suggesting that the SEC will classify Ethereum as a security this summer and reject spot Ethereum ETFs. He also believes the SEC will classify several other altcoins, including BNB, Solana (SOL), Cardano (ADA), and XRP, as securities. “Ethereum is not a commodity, it should be considered a security. After ETH, you will see many altcoins like BNB, Solana, Ripple, Cardano being unregistered securities,” Saylor said.
Implications for Institutional Acceptance
According to Saylor, this classification will prevent Ethereum and other altcoins classified as securities from being accepted by Wall Street or mainstream institutional investors. “None of them will ever be accepted as cryptocurrencies by mainstream institutional investors,” he stated.
Bitcoin’s Unique Position
Following these statements, Saylor turned his attention to Bitcoin, arguing that it is the only cryptocurrency suitable for institutional-level investments. He described Bitcoin as the “only universal” cryptocurrency and asserted that there will be no other cryptocurrency besides Bitcoin.
Conclusion
While Saylor’s predictions are speculative, they highlight the ongoing regulatory uncertainty surrounding Ethereum and other altcoins. If the SEC does classify these cryptocurrencies as securities, it could significantly impact their acceptance by institutional investors and their overall market dynamics. As the debate continues, the crypto community will be watching closely for any regulatory developments.
