Michael Saylor Calls Ethereum, Solana, BNB, and Ripple Securities

In a bold assertion during his presentation at the MicroStrategy World 2024 conference, Michael Saylor, the former CEO of MicroStrategy and a known Bitcoin proponent, claimed that major cryptocurrencies such as Ethereum (ETH), BNB (BNB), Solana (SOL), Ripple (XRP), and Cardano (ADA) are likely to be classified as securities by the United States Securities and Exchange Commission (SEC). This anticipated move by the SEC could significantly impact the future of these digital assets and their associated exchange-traded funds (ETFs).

Saylor’s comments come amidst a climate of regulatory uncertainty where the differentiation between cryptocurrencies as securities or commodities remains a contentious issue. He specifically mentioned that the SEC, under the leadership of Gary Gensler, is poised to label Ethereum, the second-largest cryptocurrency by market cap, as an unregistered security by this summer. This designation would lead to the rejection of all pending applications for spot Ethereum ETFs.

Expanding his critique to other prominent cryptocurrencies, Saylor suggested that similar security classifications could be expected for BNB, Solana, Ripple, and Cardano. He expressed skepticism regarding the potential for these altcoins to draw attention from mainstream institutional investors and Wall Street, positing that without such support, the likelihood of launching successful spot ETFs based on these cryptocurrencies is slim.

In stark contrast to his views on other cryptocurrencies, Saylor highlighted Bitcoin’s unique position in the financial landscape. He described Bitcoin as the “one universal” institutional-grade crypto asset, noting that it faces no competition in its acceptance among mainstream financial institutions.

Adding to the debate, other industry figures like Justin Sun, founder of Tron, have also expressed doubts about the SEC’s willingness to approve ETH-based investment products in the near term. The lack of substantive discussions between the SEC and potential issuers has further fueled these speculations.

Charles Hoskinson Responds to Saylor

In response to Saylor’s statements, Charles Hoskinson, the founder of Cardano, took to X with a measure of irony, critiquing the Bitcoin-centric view that often labels other cryptocurrencies as scams or illegal. Hoskinson’s tweet reflected a broader sentiment among crypto enthusiasts who advocate for a more inclusive understanding of various blockchain technologies beyond Bitcoin.

This ongoing debate between cryptocurrency advocates highlights a divide in the crypto community, with Bitcoin maximalists often at odds with supporters of other altcoins. The potential SEC decision to categorize major cryptocurrencies like Ethereum as securities could reshape the regulatory landscape and influence how companies engage with these assets. It could also impact the approval process for new crypto financial products, including spot ETFs.

Amid these discussions, some industry leaders remain optimistic. Larry Fink, CEO of BlackRock, has suggested that a spot Ethereum ETF might still be feasible even if the SEC were to classify ETH as a security, hinting at possible pathways forward despite regulatory hurdles.

As the crypto community waits for more definitive guidance from regulators, the statements by figures like Saylor and Hoskinson underscore the ongoing complexities and evolving dynamics within the cryptocurrency market.