Details of the Kraken Lawsuit Spotlight Ethereum’s Fate

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• Bloomberg Intelligence research analyst James Seyffart wrote an article on Tuesday regarding the lawsuit filed against Kraken by the SEC.
• Seyffart points out the inconsistency in the actions of the regulatory agency and emphasizes the uncertainty in their approach to Ethereum.
• On November 21, 2023, the SEC filed a lawsuit against the cryptocurrency exchange Kraken, accusing it of operating as an unregistered securities exchange without proper authorization.

The details of the lawsuit against Kraken brought attention to a move related to Ethereum: Insights from an ETF analyst!

What Decision Did the SEC Make Regarding Ethereum?

Bloomberg Intelligence research analyst James Seyffart wrote an article on Tuesday regarding the lawsuit filed against Kraken by the SEC. According to Seyffart’s latest post, the Kraken case resembles the Coinbase case. By classifying cryptocurrencies like Solana, Cardano, Algorand, and 13 other major altcoins as securities, the SEC claims that these digital assets are still under investigation within the framework of its previous enforcement actions.

Seyffart reveals that, in contrast to its own actions, the SEC has not taken a stance on Ethereum yet. Unlike listing Ethereum as a commodity, similar to Bitcoin, the SEC has not classified it as a security either. Ironically, Seyffart notes that the SEC acknowledges Ethereum as a commodity without bringing any charges against it.

Making a reference to the regulatory agency, Seyffart highlights the inconsistency in the SEC’s actions and underscores the uncertainty in their approach to Ethereum. To pique curiosity, Seyffart mentions that the financial giant BlackRock has applied for a Spot Ethereum ETF, indicating increasing institutional interest in Ethereum despite the SEC’s lack of a clear stance on it.

Kraken and the SEC: Details

On November 21, 2023, the SEC filed a lawsuit against the cryptocurrency exchange Kraken, accusing it of operating as an unregistered securities exchange without proper authorization. Jesse Powell, co-founder of Kraken, expressed his dissatisfaction with the SEC’s actions in a series of tweets. He questioned the effectiveness of a $30 million settlement accepted in February, describing the regulatory agency as determined.

Powell’s concerns about high costs and the time required to battle the SEC imply that crypto businesses might be compelled to withdraw from the U.S. market. Notable figures such as XRP lawyer John Deaton, James Seyffart, and Dave Weisberger, CEO of CoinRoutes, also responded positively.

Kraken plans to fight back, claiming that the government should determine how crypto exchanges should be regulated and criticizing the SEC’s perspective on digital assets as “legally incorrect, factually misleading, and politically disastrous.” The San Francisco-based exchange noted that the lawsuit would not affect more than 10 million of its customers.