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 SECโs newly formed crypto task force, which could have significant implications for the broader cryptocurrency market.
Defining crypto assets as securities
According to CNBCโs Tanaya Macheel, the SECโs 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.
โThe former administrationโs 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,โ Macheel said.
Todayโs 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.
โThe 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,โ Macheel said. โIf the SEC can iron out some of the uncertainties about those services being potential unregistered securities, it could change the outlook for ETH ETFs.โ
Bitcoin holds steady while Ethereum lags
Despite the regulatory uncertainty, Bitcoin (BTC) has remained stable in recent weeks. Macheel noted that Bitcoin is trading around its 200-day moving average near $84,000, which traders see as a key technical support level.
โIf it can hold the 200-day, thatโs great,โ she said. โLonger term, Ethereum to me is more peculiar. Itโs just been left for dead. There are some big short positions with hedge funds, but Bitcoin has clearly outperformed.โ
Market outlook remains mixed
Ethereumโs 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.
โGold broke $3,000 this year while Bitcoinโs been sitting in the low $80,000 range,โ she said. โSometimes the most boring assets are the biggest winners.โ
Investors are watching closely to see if the SECโs 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.
