Ethereum Enters Securities Or Commodities Category? This Is What Michael Saylor Says!

Ethereum, the second largest crypto asset after Bitcoin. (Photo; Doc. Pixabay)

JAKARTA The crypto world has been shocked again by speculation over Ethereum (ETH) status in the eyes of US regulators. The US Securities and Exchange Commission (SEC) is reportedly considering classifying Ethereum as a security, a move that could potentially have a significant impact on the crypto market as a whole.

Michael Saylor, founder of MicroStrategy and vocal supporter of Bitcoin, believes that securities labels for Ethereum are inevitable. In his presentation at the 2024 MicroStrategy World Conference, Saylor predicts that this will hamper Ethereum's access to institutional investors and Wall Street.

"With securities labels, Ethereum and other crypto-crypto under it will never be recognized by Wall Street or institutional investors as crypto assets," Saylor said.

Saylor estimates that other large cryptocurrencies such as Binance Coin (BNB), Solana (SOL), Ripple (XRP), and Cardano (ADA) also have the potential to face similar securities classification from the SEC.

Ethereum ETF Approval Uncertainty

Saylor's speculation about Ethereum's securities label has further raised investor confidence in the Ethereum spot's ETF approval in the near future. Justin Sun, founder of the TRON Foundation, also expressed concern.

"The SEC will not approve Ethereum's ETF spot this month," said Sun.

This concern is reinforced by the lack of interaction between the SEC and Ethereum regarding the detailed discussion of Ethereum ETF submitted. This lack of involvement increases the possibility of rejection or delaying decisions by the SEC.

Ethereum's definitive classification of securities or commodities will provide clarity for companies wishing to interact with these assets. It can also affect SEC approval of products such as spot ETF and the company's willingness to engage with Ethereum.

On the other hand, BlackRock CEO Larry Fink shows his optimism. In Fox's "The Claman Countdown" business event, Fink said that ETF Ethereum spot was still possible even though the SEC classified ETH as a security.