Former U.S. Securities and Exchange Commission Chairman Jay Clayton broke down the SEC's decision regarding spot Ethereum exchange-traded funds and what the next steps are.
What comes next before trading begins is whether the funds' registration statements are approved. A registration statement provides transparency regarding a fund's objectives, expenses, risks, fees, management and organization structure so that potential investors can be fully informed."I think it means it’s inevitable," he said. "We went through this same process with the bitcoin product, where almost all or all of the questions were decided.
The two underlying cryptocurrencies had different answers for whether they were securities or commodities. According to the CFTC and even current SEC chairman Gary Gensler, Bitcoin is a commodity. However, the "SEC has not definitively said up to now, and they still have not definitively said, that underlying transactions in Ethereum are not securities transactions," Clayton noted.