Apr. 3, 2024
This letter also applies to rules SR-NYSEARCA-2023-70 and SR-NYSEARCA-2024-31. My comments are my own. I am a citizen of the US, non-professional investor, and a full time employee of a Cyber Security company. I strongly oppose the approval of a spot Ethereum ETF. Approving any asset that was created through means of securities fraud should not be allowed and approving this asset as a spot ETF is setting a very bad precedent. I propose that for any crypto asset, such as Bitcoin, to be approved it must pass a newly created and rigorous test to determine whether it is a crypto security or not, and that no asset deemed a crypto security be allowed to have a spot ETF. Tests should include additional measures above and beyond the Howey test, which includes pre-mined distributions, distribution schedules, monetary policy change control, and viability of echo-system asset control in the event of uneven asset distribution especially in consideration of proof of stake systems. If a new and improved Howey test methodology is not developed and enforced on crypto securities, like Ethereum, then you are not protecting investors and are quite literally enriching individuals that have chosen to commit securities fraud against your own policy rules. I urge you to reconsider any chance at approvals for any and all existing crypto securities, especially Ethereum. As an example of what I believe to be real-time active violation of securites fraud please see the following video: https://x.com/wallstreetpro/status/1535944135353503744?s=20 -- Brian Crocker