The SEC may consider designating Ethereum as a security. This follows a request for comment, noted lawyer Scott Jonsson.
"The designation of Ethereum as a security is perceived as a possibility, but this is official notice that the SEC is considering this when reviewing spot exchange-traded fund filings. Note that this question has never been asked (as far as I know) with respect to a BTC-ETF spot/futures product," the expert explained.
According to Jonsson, the obvious aim is to potentially reject on the grounds that proposals to launch ETH-ETFs have been submitted with irregularities, as the instruments' shares are securities and not exchange-traded commodities.