Amina Bank of Switzerland: If the SEC classifies Ethereum as a security, it will bring large-scale risks to the cryptocurrency

The U.S. Securities and Exchange Commission (SEC) and its chairman Gary Genslar seem to have pointed their guns at Ethereum recently, suspecting that it is a security. Coupled with the lack of good news in the SEC's review of Ethereum spot ETFs, many analysts are worried that if the SEC really classifies Ethereum as a security, it may cause huge harm to the cryptocurrency market.

Swiss Amina Bank: Determining ETH as a security will bring risks to the market

In response to the SEC’s possible negative opinion on Ethereum, Swiss crypto-friendly bank Amina stated in the latest " The "Cryptocurrency Market Monitor" report pointed out that if Ethereum is judged as a security, it may bring large-scale risks to the encryption market, including:

• DeFi in the encryption market (go Centralized finance) platforms may be regarded as "unregistered securities brokers"

• Cryptocurrency exchanges that intend to list or have listed Ethereum need to register with the SEC

• Most cryptocurrency teams will exit the crypto space due to regulatory risks

• If the SEC insists that ETH is a security, it may force Ethereum from its current status The return of Proof of Stake (PoS) to Proof of Work (PoW) could undo years of progress in the cryptocurrency space.

SEC understands the risks of classifying Ethereum as a security?

However, Amina continued to point out in the report that in fact, the SEC also has an understanding of the market risks that may arise from judging Ethereum as a security. This is why they have not yet made a clear explanation of the attributes of Ethereum. , and repeatedly postponed the final review decision on the Ethereum spot ETF.

At the same time, Amina Bank also gave three reasons why the SEC should not determine Ethereum as a security in accordance with the current standards and reality:

• If Hao is quoted today Howey Test, Ethereum does not meet the standards for judging securities in the test

• Another US regulatory agency, the Commodity Futures Trading Commission (CFTC), has recognized ETH as a commodity and even provided Ethereum futures trading

• The U.S. SEC has approved the Ethereum futures ETF for trading on regulated exchanges, which also indicates that Ethereum is not a security

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