JPMorgan has expressed confidence that the recent Wells notice received by cryptocurrency exchange Robinhood from the US Securities and Exchange Commission (SEC) regarding alleged unregistered securities offerings is unlikely to hinder the approval of Ethereum-based exchange-traded funds (ETFs) in cash. According to The Block, JPMorgan analysts, led by Nikolaos Panigirtzoglou, stated in a report released on May 8 that they believe the Wells notice should not impede the eventual approval of Ethereum ETFs, although it may not happen as soon as this month. The analysts also noted that if the SEC denies approval of Ethereum ETFs in cash, it will likely face a legal challenge and ultimately lose, similar to the case of bitcoin-based ETFs.
It is worth mentioning that Robinhood recently received a Wells notice from the SEC, which means that the regulator may take enforcement action against the exchange. Robinhood expressed disappointment with the decision and highlighted its efforts to seek regulatory clarity, as well as its belief that the assets listed on its platform are not securities.
The report also suggests that the recent Wells notice is part of the SEC’s ongoing efforts to reinforce its stance that cryptocurrencies, excluding Bitcoin and Ethereum, should be classified as securities.
In a recent CNBC interview, SEC Chairman Gary Gensler avoided directly categorizing Ethereum as a commodity or a security. Instead, he emphasized the importance of protecting American investors and addressed the conduct of intermediaries in the crypto space.
At the time of writing, the price of Ethereum was quoted at $2,966.63, down 0.1% in the last 24 hours.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Editor’s Choice: The proposal for a Grayscale Ethereum ETF has been withdrawn. SEC Chairman Gary Gensler avoids discussing Ethereum’s status as a security.