SEC Faces Challenges After Ethereum ETF Approval, Says Crypto Lawyer

Cryptocurrency lawyer James Murphy, known as MetaLawMan, believes the United States Securities and Exchange Commission (SEC) is in trouble following its approval of spot exchange-traded funds (ETFs) for the Ethereum network. Murphy argues that the SEC's approval of Ethereum ETFs, which finalizes the debate of Ether ($ETH) being a commodity, puts the agency in a difficult position in its lawsuits against crypto firms. He points out the inconsistency in the SEC's classification of similar ecosystem tokens like Solana ($SOL) and Cardano ($ADA) as securities, while $ETH is considered a commodity. The SEC's recent approval of eight Ethereum ETFs from major asset managers has surprised the market, given the agency's historically anti-crypto stance. Murphy highlights the challenge the SEC faces in explaining to U.S. courts the differing classifications of crypto tokens within ecosystems, especially in light of a recent ruling that applied the SEC's ecosystem argument in the SEC vs. Coinbase case.