The cryptocurrency sector is going through a challenging time, and the sharp decline and its effects on cryptocurrency investors have also increased interest in regulations. Particularly, the strict pressure applied by the US and the tight scrutiny by the SEC are putting the cryptocurrency sector in a difficult situation. However, according to a famous expert, good news that will please the cryptocurrency sector could come directly from regulators soon.
It Could Affect the XRP Case
Adam Cochrani, a partner at Cinneamhain Ventures, stated on Twitter that the SEC repeatedly mentioned that ETH is a security and cannot approve its ETF. This is actually a statement related to the XRP case, and famous lawyer John E. Deaton directly responded to this statement.
Deaton expressed that Adam is 100% correct. According to Deaton, if the SEC approves an ETH ETF, it will directly affect the security status and the XRP case, and he emphasized that this is actually a very positive situation for XRP.
Deaton further stated that an ETF based on an asset in the security class cannot be created, and this is only possible with assets recognized as commodities or currencies. In this context, either ETH will be accepted as a “currency” by the SEC, or the ETH-focused ETF, which is being discussed behind closed doors, will not be approved.
ETH Decision Will Change Everything
Deaton also indirectly referred to the statements of former SEC official Hinman regarding ETH and XRP. Ripple made a very bad preliminary decision because of these statements, and as a result, the XRP price rose to $0.91. Now, there is talk of an action that could directly end the XRP case, which could change everything without XRP investors realizing it.
If the SEC actually approves an ETH-focused ETF, it will affect the course of the case and potentially other cryptocurrency-focused securities cases.
