Michael Saylor, the executive chair of MicroStrategy, has speculated that the United States Securities and Exchange Commission (SEC) will classify Ether (ETH) as a security and deny the listing and trading of spot Ether exchange-traded funds (ETFs).

Speaking at MicroStrategy's Bitcoin For Corporations conference on May 1, Saylor stated that the SEC would likely label ETH as a crypto asset security under its regulatory purview, rather than a commodity under the jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC).

According to Saylor, the SEC's classification of Ether as a security could have far-reaching implications for other cryptocurrencies as well. He predicted that the SEC might subsequently treat tokens such as Binance Coin (BNB), Solana (SOL), XRP, and Cardano's ADA as "unregistered crypto asset securities."

"None of [these tokens] will ever be wrapped by a spot ETF, none of them will be accepted by Wall Street, none of them will be accepted by mainstream institutional investors as crypto assets," said Saylor.

Saylor's remarks come amid growing concerns among experts about whether the SEC will approve the listing and trading of spot Ether ETFs on U.S. exchanges. The first significant deadlines for ETF applications from investment firms VanEck and ARK Invest are approaching on May 23 and May 24, respectively.

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Saylor's speculation is further fueled by recent developments in the ongoing legal battle between the SEC and various entities in the cryptocurrency industry. Unredacted portions of a lawsuit filed by ConsenSys alleged that the SEC launched an investigation into Ether as a potential security as early as March 2023. Additionally, SEC Chair Gary Gensler has avoided directly answering questions about whether Ether should be classified as a security, despite previous statements suggesting otherwise.

Saylor is a well-known proponent of Bitcoin (BTC) and has been a driving force behind MicroStrategy's acquisition of the cryptocurrency as a reserve asset. As of April 30, the company held 214,400 BTC, worth more than $13 billion at the time of publication.

The SEC's potential classification of Ether and other cryptocurrencies as securities has significant implications for the industry, as it could impact the ability of these assets to be traded on traditional financial markets and potentially limit institutional investment. As the regulatory landscape continues to evolve, market participants will be closely monitoring the SEC's actions and decisions regarding the classification and treatment of digital assets.