The U.S. Securities and Exchange Commission is hosting its inaugural roundtable discussion on cryptocurrency regulations, concentrating on how to determine the security status of crypto assets.
This event signifies the commencement of a series of talks by the SEC’s newly established crypto task force, which may have considerable consequences for the wider cryptocurrency market.
Classifying crypto assets as securities
“The previous administration’s SEC pursued numerous companies involved in crypto, claiming that most tokens were unregistered securities but lacking clarity on how to comply to avoid scrutiny,” Macheel stated.
Today’s roundtable may also have repercussions for Ethereum (ETH) exchange-traded funds. Although the SEC recently clarified that meme coins do not qualify as securities, it has yet to take a firm position on staking services associated with crypto ETFs, a factor that could influence future developments in the market.
“Interest in ETH ETFs has been muted compared to Bitcoin ETFs, mainly due to the inability to earn staking yields on these funds,” Macheel noted. “If the SEC can resolve some uncertainties regarding those services potentially being unregistered securities, it could alter the perception of ETH ETFs.”
Bitcoin remains stable as Ethereum struggles
In spite of ongoing regulatory ambiguities, Bitcoin (BTC) has shown stability in recent weeks. Macheel observed that Bitcoin is trading near its 200-day moving average around $84,000, which traders identify as a crucial technical support level.
“If it can maintain that 200-day level, it’s a positive sign,” she expressed. “Longer term, Ethereum’s situation seems more perplexing. It feels like it’s been neglected. There are significant short positions with hedge funds, but Bitcoin is clearly outshining it.”
Market perspective remains uncertain
Ethereum’s lagging performance compared to Bitcoin has become a distinct trend. While Bitcoin has sustained its value, Ethereum has found it challenging to build momentum, even in the face of growing institutional interest in ETH-centered financial products.
Macheel also highlighted that the overall crypto market has experienced relatively low activity compared to other asset classes like gold.
“Gold surpassed $3,000 this year, while Bitcoin has remained within the low $80,000 range,” she mentioned. “Sometimes the most uneventful assets turn out to be the biggest winners.”
Investors are keenly observing the SEC’s roundtable to see if it will shed light on staking and the broader regulatory environment for crypto assets. A more clearly defined regulatory landscape could enhance adoption and lead to new financial products associated with crypto assets.