The U.S. Securities and Exchange Commission (SEC) this week hosted its inaugural roundtable on crypto regulation, with the aim of determining the security status of digital assets.
The event, sponsored by the SEC’s newly formed crypto task force, could make or break the future of Ethereum exchange-traded funds (ETFs) and other crypto-based financial instruments.
Determining Securities in the Crypto Economy
CNBC’s Tanaya Macheel noted the SEC’s new focus on providing clarity to regulation. She said that under the previous administration, the SEC aggressively pursued crypto businesses without offering clear compliance rules.
“The previous administration’s SEC went after many companies for their crypto business. but didn’t give clear guidelines,” Macheel stated.
This ambiguity, especially over what constitutes an unregistered security, has generated ongoing tension between regulators and the cryptocurrency industry.
Ethereum ETFs in the Spotlight
One of the most spotlighted areas of contention is the SEC’s stance on staking services, particularly those for Ethereum ETFs. Macheel noted that tepid demand for ETH ETFs is largely a function of regulatory uncertainty over staking returns.
If the SEC can clear up some of the ambiguity. it might change the perspective on ETH ETFs,” she added.
While meme coins have been excluded from the SEC’s security designation, uncertainty regarding staking services remains looming over Ethereum financial products.
Bitcoin Remains Resilient as Ethereum Struggles
Despite the regulatory uncertainty, Bitcoin has remained steady, fluctuating around its 200-day moving average of $84,000. Macheel described Ethereum’s performance as “surreal,” noting its lagging behind Bitcoin and short positions by hedge funds.
“Ethereum. has just been left for dead,” she said, comparing its flatness to Bitcoin’s relative robustness.
Looking Ahead: Can Regulation Unlock Growth?
The broader crypto market has seen muted trading compared to gold and other assets. Still, most investors are hopeful that clearer SEC regulations will help spark renewed interest and innovation.
“Gold hit $3,000 this year while Bitcoin was at the low $80,000s,” Macheel said. “Sometimes the most boring assets are the biggest winners.”
The industry is now watching keenly as the SEC continues with its roundtable series—hopeful that it unlocks new momentum for Ethereum and the broader crypto universe.
