SEC Cannot Call ETH Security and Approve ETH Futures ETF: Analyst

Adam Cochran, a partner at Cinneamhain Ventures, has stated in a recent Twitter post that the SEC cannot simultaneously argue that $ETH is a new intrinsic “crypto asset security” that is unregistered, and approve an $ETH Futures ETF.

“You couldn’t have a futures ETF made out of an unregistered security,” argued the crypto analyst. The SEC, according to him, must accept the state that $ETH is a commodity or a currency for this to be the case and revert to only attacking the transactional matter of it under Howey. Cochran added:

So if the SEC is approving an Ethereum futures ETF they are intrinsically conceding that Ethereum itself is not a security. Despite the way it was sold, despite it being proof of stake, despite its purpose and use. That’s a *BIG* win.

Cochran also believes that this move from the SEC is something that Ripple can bring up in the SEC vs. Ripple case, showing that there is clearly a matter of distinction between the asset itself and its sales. However, the analyst clarified that it does not de facto mean that all crypto assets are non-securities. “But,” he added, “it does mean the SEC conceding that there is a line somewhere, and now we have to litigate over where the line is, rather than if the line exists.”

Pro-$XRP lawyer John Deaton commented on Cochran’s interpretation of the situation saying that he is a hundred percent correct here. Deaton asserted that if the SEC approves an $ETH Futures ETF, then it would also be favorable to any potential appeal involving $XRP.

In related news, earlier this week, Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen filed their opposition to the SEC’s request to file an interlocutory appeal and for a stay on all proceedings pending appeal.