SEC Extends Decision Timeline for Fidelity’s Ethereum ETF

SEC Extends Decision Timeline for Fidelity’s Ethereum ETF

19th Jan, 2024

In a recent court filing, the U.S. Securities and Exchange Commission (SEC) announced the postponement of its decision on Fidelity’s spot Ethereum exchange-traded fund (ETF) until March 5th. The move follows the recent approval of a spot Bitcoin ETF by the SEC, a decision anticipated to drive broader cryptocurrency adoption in the United States.

Bloomberg ETF analyst James Seyffart commented on the delay, stating, "Fidelity #ethereum ETF delayed just now. Completely expected. Dates that really matter are late May in my view."

Simultaneously, the SEC is engaged in a legal dispute with Coinbase, accusing the platform of selling unregistered securities. During a recent hearing, Coinbase contested these allegations, asserting that none of its tokens should be classified as securities. Judge Katherine Polk Failla refrained from making an immediate decision, expressing concerns about regulatory overreach.

Criticism mounts against the SEC's stringent enforcement approach in the cryptocurrency space. Senator Cynthia Lummis argued in support of Coinbase, stating that the SEC's attempt to classify cryptocurrencies as securities goes beyond its authority, infringing on Congress's legislative domain and violating the separation of powers.

Ripple CEO Brad Garlinghouse also voiced criticism of the SEC's leadership, particularly targeting Chairman Gary Gensler. Garlinghouse stated, "I do think the chair of the SEC, Gary Gensler, is a political liability in the United States. And I think he’s not acting in the interests of the citizenry, he’s not acting in the interests of the long-term growth of the economy, and I don’t understand it."

Amidst these legal battles, the designation of Ethereum by the SEC remains uncertain, leaving the crypto community eagerly awaiting further developments.


Emmanuel Nchuma

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