Andreessen Horowitz, (A16z), has said that the US Securities and Exchange Commission will not succeed in its legal effort against Ethereum. Specifically, Andreessen Horowitz’s Global Head of Policy, Brian Quintenz. pointed out that ETH’s non-security status would prove to be the ultimate failure of this probe.
You can also find out more about the following: Ethereum FoundationYesterday, it was announced that the Swiss non-profit organization supporting the network is under investigation by the government. Later reports revealed that the SEC was behind the coordinated effort. All in all, the SEC appears to have been trying to reduce Spot Ethereum ETF approvals for this year.
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Please Read This: SEC Pursuing Legal Campaign to Classify Ethereum as a Security
A16z says Ethereum is not a security, and expects the SEC campaign to fail
Ethereum has experienced a lot of activity in the last 24 hours. It is the SEC’s latest target for digital assets. Investors sought out similar Ethereum offerings after the SEC reluctantly approved Spot Bitcoin ETF in January. The agency is responding by launching its own Efforts to change its status as a security threat.
Brian Quintenz, A16z’s Global Policy Director, believes that the SEC will likely fail in its legal campaign to stop Ethereum. Quintenz specifically took to X, formerly Twitter to point out that the SEC operates under the assumption that ETH is not a securities.
“Reminder: When the SEC allowed ETH Futures ETFs to trade on its regulated security exchanges, it explicitly acknowledged the status of the underlying, ETH, as being a non-security and outside of its jurisdiction,” Quintenzz said.
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Moreover, the timeframe of his efforts was also addressed. According to reports, SEC started its investigation when Ethereum switched to an proof-of-stake This was a change that took place in 2022. Quintenze points out that the ETH Futures ETF was approved much later.
“If the SEC had any doubt about the regulatory treatment of ETH in Oct 2023, it wouldn’t have approved the ETF,” Quintenze said. “If ETH were in fact, a security, then the CFTC-listed futures contracts 9on which the ETFs were based) would be illegal,” He concluded.
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Source: watcher.guru