MicroStrategy founder Michael Saylor, a renowned Bitcoin maximalist, has issued harsh predictions for Ethereum (ETH) and other altcoins, including XRP, Cardano (ADA), and Solana (SOL).
During MicroStrategy’s recent Bitcoin for Corporations event, Saylor asserted that these altcoins will not be approved for spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) because they are securities.
Ethereum Spot ETF Prospects and Regulatory Scrutiny
Saylor believes the SEC will reject applications for Ethereum-based spot ETFs this summer. He believes this could classify ETH as an unregistered security instead of a commodity.
The SEC, as previously reported by Times Tabloid, is investigating whether certain Ethereum transactions qualify as investment contracts, which could affect the fate of Ethereum-based ETF applications. While Ethereum has not been definitively labeled as a security, the ongoing investigations create uncertainty.
Saylor criticized popular altcoins like Ethereum (ETH), XRP, Binance Coin (BNB), Cardano (ADA), and Solana (SOL), calling them unregistered crypto securities. He believes they are unlikely to gain mainstream adoption due to their lack of spot ETF prospects. It’s worth noting that these altcoins are under SEC scrutiny for potential security classifications.
For instance, the SEC labeled XRP a security in its lawsuit against Ripple in December 2020. Similarly, the regulatory body has applied the security label to SOL, ADA, and BNB in its legal actions against Coinbase and Binance. XRP, however, holds the distinction of being the only altcoin with legal clarity within the United States, having received a security classification from a New York federal court in July 2023.
Saylor’s Bitcoin Advocacy and Regulatory Landscape
In contrast to his negative outlook on altcoins, Saylor supports Bitcoin and considers it as the “one, universal, consensus, accepted, institutional-grade crypto asset.” MicroStrategy, under Saylor’s leadership, has aggressively acquired Bitcoin since August 2020.
Saylor’s stance aligns with a common trend among certain Bitcoin proponents who advocate for stricter regulatory measures against altcoins because they believe Bitcoin is a better store of value and a hedge against inflation.
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Read Also: Michael Saylor’s Microstrategy Adds 301 BTC; Now Holding 130,000 Bitcoins
BlackRock and the Ethereum ETF Debate
Although the possibility of an Ethereum ETF is uncertain, some industry experts are optimistic. Larry Fink, CEO of BlackRock, believes that an Ethereum ETF could still be launched even if the SEC classifies ETH as a security. BlackRock is actively working towards launching a spot ETF for Ethereum.
The regulatory landscape affects the altcoin market, and Saylor’s Bitcoin bias may pose challenges for altcoins to gain mainstream acceptance. The SEC’s decision on Ethereum’s ETF applications is still unknown.
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