According to a report by The Block, analysts from JPMorgan have stated that the recent Wells notice issued by the U.S. Securities and Exchange Commission (SEC) to Robinhood regarding “alleged unregistered securities trading” is unlikely to impede the potential approval of Ethereum spot ETFs. If the SEC rejects the approval of these ETFs, it may face legal challenges and lose the lawsuit.
Earlier this week, Robinhood claimed that its cryptocurrency division had received a Wells notice from the SEC, indicating that the regulatory agency is prepared to take enforcement action against the company for alleged securities violations.
According to JPMorgan analysts, the Wells notice appears to be an attempt by the SEC to further strengthen its position that all cryptocurrencies, except for Bitcoin and Ethereum, should be classified as securities. However, the SEC has not explicitly stated whether Ethereum is a security or not. When asked by the media if the Wells notice implies this, Nikolaos Panigirtzoglou stated:
Furthermore, the JPMorgan analysts also added that even if the Ethereum spot ETFs are not approved this month, it is “unlikely to be a big negative.” The market seems to have already discounted the expectation of approval this month, as evident from the negative premium trend of the Grayscale Ethereum Trust.
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