The SEC, which has been waging a war against cryptocurrency markets for years, showed some leniency amid the upcoming US elections. The institution suddenly changed its stance on Ethereum by 180 degrees and approved the ETF. Moreover, it had only been a few weeks since the institution declared war on the Ethereum ecosystem. So why is today important for cryptocurrencies?
Will Altcoins Drop?
BTC price fell to $64,658, and altcoins turned downward again. Rapid losses are due to fluctuations in BTC price. However, there could be much more activity in cryptocurrencies within a few hours today.
With the SEC’s approval of the ETH ETF, a different picture emerged. Although Gensler personally continues to argue that Ethereum is a security, his institution has abandoned this stubbornness. The institution’s retreat on Ethereum could also eliminate attacks claiming that altcoins similar in structure to Ethereum are securities.
2 Hours Left for the Trial
At 20:00 TSI, 13:00 ET, the hearing between Kraken and the SEC will take place. If the SEC has softened its stance as an institution following the ETH ETF decision, we should see this clearly at the 20:00 (TSI) hearing. In a scenario where the insistence on the Howey test does not continue, altcoins could experience a celebratory atmosphere.
Eleanor Terrett from Fox Business wrote the following warning sentences a few minutes ago:
“The oral arguments of the SEC case begin today at 13:00 ET/10:00 PT. In addition to Kraken operating as an unregistered exchange and broker-dealer, the SEC claims that 11 tokens, including $SOL, $ADA, and $ALGO, are securities.
As laurabrooksie1 pointed out, it will be interesting to hear whether SEC attorneys use the arguments about the so-called “ecosystems” of tokens that trigger the Howey Test in Coinbase’s MTD hearing, thereby making them securities.
Remember that with the approval of spot ETFs, the SEC has assigned commodity status to both $BTC and $ETH, but Gensler continues his old stubbornness. BTC and ETH represent the two largest ecosystems in crypto.”
The hearing will be exciting for cryptocurrencies in general, especially for 11 altcoins.
