Bloomberg Analyst Slams SEC For Implicitly Accepting Ethereum As Commodity

Bloomberg Intelligence research analyst, James Seyffart takes on SEC for suing Kraken on Tuesday. In a recent post, Seyffart said that the Kraken lawsuit looks similar to the Coinbase one. Touting cryptos like Solana, Cardano, Algorand, and other 13 major altcoins as security, the SEC alleged that these digital assets are still under scrutiny under the SEC’s prior enforcement actions.

James Seyffart Points Out on Unregistered Ethereum

Slamming SEC on their own game, Seyffart reveals that SEC has not taken any stance on Ethereum yet.

Neither listed it as a commodity, as SEC does with Bitcoin, nor as a security. He satirically said that the SEC has accepted ETH as a commodity and has never imposed any charges on it.

Taking a dig at the regulatory body, Seyffart draws attention to the irony of the SEC’s actions, emphasizing the lack of clarity in their approach to Ethereum.

Adding to the intrigue, Seyffart notes that financial giant BlackRock has filed for Spot Ethereum ETF, suggesting a growing institutional interest in Ethereum despite the SEC’s apparent hesitancy to take a clear stance.

Also Read: XRP Lawyer John Deaton Takes On SEC To Support Kraken Users

Kraken Vs SEC Till Now

On Tuesday, Nov 21, 2023, the US SEC filed a lawsuit against crypto exchange Kraken for illegally serving as a securities exchange without first registering with the authority.

Jesse Powell, co-founder of Kraken, expressed his displeasure with the SEC’s actions in a series of tweets. He characterized the regulatory body as tenacious and called into doubt the effectiveness of a $30 million settlement agreed in February.

Powell’s expression of concern about the high costs and time required to fight the SEC implies that crypto businesses may be forced to abandon the US market.

Along with that, notable figures like XRP lawyer John Deaton, including James Seffart, and CoinRoutes CEO Dave Weisberger have reacted to it positively.

Kraken plans to fight back, claiming that the Government should decide how crypto exchanges should be regulated and that the SEC’s view of digital assets is “incorrect as a matter of law, false as a matter of fact, and disastrous as a matter of policy.” The San Francisco-based exchange also stated that the lawsuit would not affect its more than 10 million customers.