Bitcoin vs. Altcoins? Hoskinson Fires Back at Saylor's Security Accusation

Speaking at MicroStrategy World 2024, Michael Saylor proposed that this summer, the second-largest cryptocurrency in the market, Ether (ETH), will be designated as an unregistered security by the US Securities and Exchange Commission (SEC), led by Gary Gensler, and that as a result, all applications for spot ETH ETFs will be denied.

Saylor also contended that the SEC will classify other popular cryptocurrencies including BNB (BNB), Solana's SOL, Ripple's XRP, and Cardano's ADA under a similar security classification.

Saylor stated that he does not believe Wall Street and traditional institutional investors will be interested in these cryptocurrencies. They won't ever witness the introduction of spot ETFs based on them as a result.

Saylor, on the other hand, highlighted Bitcoin's exclusive position as the only cryptocurrency that has received complete institutional approval, referring to it as the "one universal" institutional-grade crypto asset that has no competitors.

Remarkably, Saylor is not alone among industry analysts who are dubious about spot ether ETF approval in the near future. Justin Sun, the founder of Tron, stated he does not believe the ETH-based investment products will be approved by the SEC this month. Furthermore, the likelihood of a rejection has increased due to the SEC and possible issuers not having had in-depth discussions.

Hoskinson's Response to Saylor's Remarks

Hoskinson reacted to Saylor's remarks with a hint of irony, citing Bitcoiners who charge him with regularly criticizing Bitcoin and asserting that "altcoiners are so toxic." These Bitcoin maxis constantly criticize the market's leading altcoins and assert that "literally everything but Bitcoin is illegal and a scam."

The majority of proponents of Bitcoin maximalism contend that only Bitcoin (BTC) is a legitimate cryptocurrency and that other currencies are frauds and unregistered securities. How businesses use ether may change if ether is finally classified as a security. Furthermore, it may have an impact on the SEC's decision to approve ETH spot ETF products.

However, CEO of BlackRock Larry Fink said that even if the SEC finds ETH to be a security, a spot ether ETF would still be feasible.

The regulatory landscape for cryptocurrencies is in flux, with the SEC potentially classifying Ether and other prominent tokens as securities. This could have a significant impact on the approval of spot ETFs and how businesses utilize these assets.

While industry figures like Saylor believe this will limit institutional interest, others like Fink from BlackRock see a potential path forward even with a security classification. The future of cryptocurrency regulation remains to be seen, but it will undoubtedly shape how these digital assets integrate into the mainstream financial system.

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