Fidelity’s Spot Ethereum ETF Decision Postponed by SEC

The SEC Postpones Ruling on Fidelity’s Ethereum ETF

The United States Securities and Exchange Commission (SEC) has delayed its decision regarding Fidelity’s spot Ethereum exchange-traded fund until March 5th, as revealed in a new court filing.

Reason for Delay

The Thursday filing stated, “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”

According to Bloomberg ETF analyst James Seyffart, the important dates concerning the Ethereum ETF’s approval are expected to be in late May.

Coinbase and SEC Legal Battle

The SEC’s delay decision coincides with its legal conflict with Coinbase, where the agency has accused the exchange of selling unregistered securities on its platform. During the hearing, Coinbase disputed these allegations, arguing that none of the tokens on the platform qualify as securities.

Judge Katherine Polk Failla, overseeing the case, expressed concerns about regulatory overreach and refrained from making an immediate decision.

SEC’s Cryptocurrency Enforcement and Criticisms

The SEC’s extensive approach towards cryptocurrency enforcement has drawn criticism. Senator Cynthia Lummis claimed that the agency’s attempts to classify cryptocurrencies as securities exceeded its authority and encroached on Congress’s lawmaking.

Ripple CEO Brad Garlinghouse also criticized the SEC’s leadership, expressing distrust in the agency’s actions and decision-making.

Uncertainty about Ethereum’s Designation

It remains unclear what asset class the SEC will designate Ethereum as, adding to the ongoing uncertainty around cryptocurrency regulation and classification.