‘these cryptos will be labeled as securities’

Michael Saylor, the founder of MicroStrategy (MSTR) and a Bitcoin (BTC) maximalist, recently stated that the US Securities and Exchange Commission (SEC) will likely classify major cryptocurrencies such as Ethereum (ETH) as securities.

Cryptocurrencies currently fall into a gray area in terms of regulation. The security classification will likely result in all applications for spot Ethereum exchange traded funds (ETFs) being rejected this summer.

The pessimism for an Ethereum ETF is further fueled with recent developments and expert opinions pointing to significant challenges. Decisions from the SEC regarding approval are delayed, increasing rumors of a rejection.