US regulators have been closely monitoring cryptocurrency assets in recent months, and as pressure on the crypto industry continues to mount, experts continue to speculate about the future of these assets.
According to JPMorgan analysts, as reported by Block, Ethereum could be treated differently from other altcoins. In their recent comments, the analysts suggested that the US Congress could classify Ethereum as a commodity alongside Bitcoin, subjecting it to less regulatory scrutiny compared to securities.
The latest report from JPMorgan, reflecting the views of the analysts, highlighted the possibility of categorizing cryptocurrencies with sufficient decentralization, including Ethereum, into a separate category from securities.
This comment from JPMorgan came after the recent release of the Hinman documents as part of the SEC-Ripple case earlier this week. These documents contain detailed statements from 2018 indicating that the SEC did not view Ethereum as a security.
The statements in these documents emphasized the decentralized nature of Ethereum and the absence of a controlling group specific to the cryptocurrency, which led to the conclusion that Ethereum should not be considered a security. However, the documents also warned that there may still be a need for regulation to protect investors.
In addition, SEC Chairman Gary Gensler recently testified before the House Financial Services Committee. Although he did not mention Ethereum during the hearing, Gensler has previously stated in various interviews that, except for Bitcoin, he considers all other crypto assets as securities.
In conclusion, JPMorgan analysts agree that the Hinman documents would benefit Ethereum more than Ripple. The impact of these documents on Ripple remains uncertain. JPMorgan believes that it is more important for Ripple to win the fair notice defense in the SEC case. If this claim is accepted by the court, it could significantly narrow the SEC's jurisdiction. Other crypto projects targeted by the SEC are also likely to make similar fair notice arguments.