According to a report by The Block, analysts at JPMorgan Chase stated that the recent Wells notice issued by the United States Securities and Exchange Commission (SEC) to Robinhood regarding “alleged offering of unregistered securities trading” is unlikely to hinder the potential approval of Ether spot ETFs. If the SEC rejects the approval of these ETFs, it may face legal challenges and lose the case.
Earlier this week, Robinhood claimed that its cryptocurrency division has received a Wells notice from the SEC, indicating that the regulatory authority is prepared to take enforcement action against the company for alleged securities violations.
According to JPMorgan Chase analysts, the Wells notice appears to be an attempt by the SEC to further strengthen its position that all cryptocurrencies, except for Bitcoin and Ether, should be classified as securities. However, the SEC has not explicitly stated whether Ether is considered a security. When asked by the media if the Wells notice implies this, Nikolaos Panigirtzoglou stated:
Furthermore, the JPMorgan Chase analysts also added that even if Ether spot ETFs are not approved this month, it is “unlikely to be a big negative.” The market seems to have already discounted the expectation of approval this month, as seen from the negative premium trend of the Grayscale Ethereum Trust.
