The Securities and Exchange Commission is putting the initial cryptocurrency into a roundtable state, focusing on defining the security status of cryptocurrency assets.
The event marks the beginning of a series of discussions by the SEC’s newly established cryptographic task force. This could have a great significance for the broader cryptocurrency market.
Define crypto assets as securities
According to CNBC’s Tanaya Macheel, the SEC’s efforts aim to provide clearer guidelines on whether certain crypto assets should be classified as securities.
“The SEC in previous administrations has targeted many companies to engage with encryption, and most coins are unregistered securities, but they did not provide clear guidelines to follow to avoid targets,” Macheel said.
Today’s roundtables could also affect Ethereum (ETH) Exchange-Taded Funds. The SEC recently said that the meme coins are not considered securities, but the agency has yet to disclose its stance on staking services related to Crypto ETF, a factor that could affect the future growth of the market.
“The appetite for ETH ETFs is the key compared to Bitcoin ETFs, and one of the main reasons is that these funds do not allow for piling yields,” says Macheel. “If the SEC can resolve some of the uncertainties that these services are potential unregistered securities, it could change the outlook for ETH ETFs.”
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Bitcoin is stable and Ethereum is behind
Despite regulatory uncertainty, Bitcoin (BTC) has been stable in recent weeks. Macheel noted that Bitcoin is trading its 200-day moving average of nearly $84,000.
“If you can hold 200 days, that’s great,” she said. “In the long run, Ethereum is more unique to me. I’ve just died. There are some big short positions in hedge funds, but Bitcoin is clearly outperforming.”
Market outlook is still mixed
Ethereum’s insufficient performance against Bitcoin was a noticeable trend. Bitcoin is steadily holding, but Ethereum is struggling to gain momentum despite growing institutional interest in ETH-based financial products.
Macheel also noted that the broader crypto market saw relatively restrained activity compared to other asset classes such as gold.
“This year, gold broke $3,000 and Bitcoin sat in the low $80,000 range,” she said. “Sometimes, the most boring assets are the biggest winners.”
Investors are cautioning whether the SEC roundtable clarifies cryptocurrency staking and broader regulatory frameworks. A clearer regulatory environment could pave the way for increased adoption and new financial products related to cryptocurrency.
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