According to Bitcoin maximalist Michael Saylor, various alternative cryptocurrencies, such as Ethereum and Ripple, are unlikely to gain institutional acceptance in the current decade. Speaking at the annual Bitcoin for Corporations event, the Executive Chairman of MicroStrategy expressed his belief that regulators on Wall Street consider all cryptocurrencies beyond Bitcoin as unregistered crypto asset securities.
Saylor specifically mentioned altcoins like Solana, Ripple, and Cardano as falling into this category of unregistered crypto asset securities. This sentiment comes amidst a wave of spot Bitcoin ETF issuers seeking approval for products backed by Ethereum, the second-largest digital asset in the crypto market. However, regulatory bodies like the U.S. SEC have delayed the approval of several spot ETH ETF filings from prominent issuers such as BlackRock, Fidelity, and Grayscale.
The SEC has also intensified its scrutiny on Ethereum and the broader crypto industry, arguing that certain tokens like ETH do not adhere to existing securities laws. Reports have surfaced indicating that SEC Chair Gary Gensler has considered Ethereum a security since at least last year. In response to ETH’s shift to a proof-of-work consensus, the SEC has initiated an investigation by issuing a Wells notice to key ETH stakeholders like Consensys and major decentralized finance (defi) platforms like Uniswap.
In light of these developments, Consensys has taken legal action against the SEC over its stringent approach towards Ethereum and the crypto market.