Max Keiser Dismisses Ethereum ETF as a “Proof-of-Stake Scam”

Max Keiser, a famous Bitcoin maximalist and advisor to the president of El Salvador, expressed doubts about the possibility of an Ethereum ETF. Keiser, a vocal champion of Bitcoin and a critic of other digital assets, rejects Ethereum, stating it is a “proof-of-stake scam,” claiming that it is not suitable for approval by the U.S. Securities and Exchange Commission (SEC).

Keiser’s comments are also similar to those of others in the industry, such as VanEck and CoinShares, who have doubts about whether an Ethereum ETF is likely to get SEC approval. The CEO of VanEck expects a rejection of the ETF, saying that the SEC rarely provides constructive feedback on proposals. In the same vein, the head of CoinShares sees a dim future for Ethereum ETF approval this year, if at all.

Besides, Keiser’s recent backing of the SEC in the continuous court conflict of the Coinbase vs. SEC lawsuit highlights his position. Keiser stated that all altcoins, ether, and ripple are “unregistered securities,” putting them in line with the SEC’s categorization. The quote comes after a court decision on the dismissal of Coinbase’s request to dismiss a lawsuit filed by the SEC against the company for participating in the trading of unregistered securities.

Market Speculation Concerning the Approval of Ethereum ETF

The crypto community is waiting for the approval of a spot Ethereum Exchange-Traded Fund (ETF), and many analysts and experts debate what the regulator will do. Initially scheduled for May, all the expectations of approval have disappeared. To this date, the SEC has been silent on the matter; consequently, clear details have become evasive.

The newest twist in this story comes from the side of JP Morgan and the speculations of potential litigation from the SEC if an Ethereum ETF does not appear in May. Rumors have it that such legal measures may make the SEC rethink its position on Ethereum ETFs. Nonetheless, with big industry guns such as Max Keiser being skeptical and experiencing regulatory uncertainty, the approval path is too obscure.

SEC on the Prudence and Legal Battle with Coinbase

Max Keiser deems Ethereum a “proof-of-stake scam,” thus supporting the SEC’s anticipated dilemmatic decision to authorize an Ethereum ETF. In addition, the continuing legal battle between the SEC and Coinbase only serves to draw more regulatory attention to altcoins, with the agency claiming the trading of unregistered securities.

Read Also: XRP Ledger (XRPL) Welcomes Crucial NFT Amendment on Mainnet

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Maxwell Mutuma
CoinGape