- The cryptocurrency sector is currently under intense scrutiny, with the US and the SEC exerting significant pressure.
- An industry expert predicts that regulators may soon deliver news that will uplift the sector.
- The SEC’s decision on whether to classify Ethereum (ETH) as a security could have implications for the ongoing Ripple (XRP) lawsuit.
The cryptocurrency industry is facing challenging times, with the recent market downturn and regulatory pressures causing concern for investors. The US and the SEC’s stringent measures have put the sector in a tough spot. However, according to a prominent expert, positive news that could boost the industry may be on the horizon from regulators.
Implications for the Ripple Lawsuit
Adam Cochrane, a partner at Cinneamhain Ventures, highlighted on Twitter that the SEC’s stance on Ethereum being a security and its inability to approve an Ethereum ETF could have implications for the Ripple lawsuit. Renowned lawyer John E. Deaton responded to Cochrane’s comments, agreeing with his assessment.
Deaton emphasized that if the SEC were to approve an Ethereum ETF, it would directly impact Ethereum’s status as a security and the Ripple lawsuit. He underscored that this could be a positive development for Ripple.
Deaton further explained that an ETF cannot be based on a security and can only be possible with assets recognized as commodities or currencies. Therefore, the SEC will either recognize Ethereum as a currency, or the rumored Ethereum-focused ETF will not be approved.
Ethereum Decision Could Change Everything
In his statement, Deaton also referred to comments made by former SEC official Hinman about Ethereum and Ripple. Ripple had previously received an unfavorable preliminary decision due to these comments, causing the XRP price to rise to $0.91. Now, there is talk of a move that could potentially end the Ripple lawsuit, a development that could change everything, even if XRP investors are not yet aware of it.
If the SEC indeed approves an Ethereum-focused ETF, it will influence the course of the lawsuit and potentially impact other cryptocurrency-related securities lawsuits.
Conclusion
The current regulatory pressures on the cryptocurrency sector are intense, but the possibility of an Ethereum ETF approval by the SEC could bring about significant changes. Not only could this decision uplift the sector, but it could also have far-reaching implications for other cryptocurrency lawsuits, such as the ongoing Ripple case.
