CNBC’s Macheel: SEC roundtable could ‘change the outlook’ for Ethereum ETFs

The U.S. Securities and Exchange Commission is holding its first crypto regulation roundtable, focusing on defining the security status of crypto assets.

The event marks the beginning of a series of discussions by the SEC’s newly formed crypto task force, which could have significant implications for the broader cryptocurrency market.

Defining 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, an issue that has created tension between the SEC and the crypto industry.

“The former administration’s SEC targeted many companies for their involvement with crypto, alleging most coins were unregistered securities but failing to give clear guidelines to follow to avoid being targeted,” Macheel said.

Today’s roundtable could also have implications for Ethereum (ETH) exchange-traded funds. While the SEC recently stated that meme coins are not considered securities, the agency has yet to clarify its stance on staking services linked to crypto ETFs, a factor that could affect future growth in the market.

“The appetite for ETH ETFs has been tepid compared to Bitcoin ETFs, and one of the big reasons is the inability to earn a staking yield on those funds,” Macheel said. “If the SEC can iron out some of the uncertainties about those services being potential unregistered securities, it could change the outlook for ETH ETFs.”

“If it can hold the 200-day, that’s great,” she said. “Longer term, Ethereum to me is more peculiar. It’s just been left for dead. There are some big short positions with hedge funds, but Bitcoin has clearly outperformed.”

Market outlook remains mixed

Ethereum’s underperformance relative to Bitcoin has been a notable trend. While Bitcoin has held steady, Ethereum has struggled to gain momentum despite increasing institutional interest in ETH-based financial products.

Macheel also pointed out that the broader crypto market has seen relatively subdued activity compared to other asset classes like gold.

“Gold broke $3,000 this year while Bitcoin’s been sitting in the low $80,000 range,” she said. “Sometimes the most boring assets are the biggest winners.”

Investors are watching closely to see if the SEC’s roundtable will provide clarity on staking and the broader regulatory framework for crypto assets. A more defined regulatory environment could pave the way for increased adoption and new financial products tied to crypto assets.

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