The U.S. Securities and Exchange Commission (SEC) is close to approving Ethereum (ETH) futures exchange-traded funds (ETFs), according to a Bloomberg report.

While there has been no official announcement from the SEC, the report suggests that the decision is imminent. The regulatory body has been evaluating the potential risks and benefits of such a financial product, considering factors such as market stability, investor protection, and compliance with existing regulations.

The potential approval of ETH futures ETFs would follow the precedent set by the launch of Bitcoin futures ETFs in 2021.

Crypto analyst Adam Cochran explained that if the ETH Futures ETF news is accurate, it may be even more substantial than initially perceived.

Cochran emphasized that the SEC’s approval would inherently mean that Ethereum itself is not considered a security. He stated, “You couldn’t have a futures ETF made out of an unregistered security. You must accept the state that it is a commodity or a currency for this to be the case.”

He further noted that this would be a “BIG win” for Ethereum, as it would clarify its status despite various factors such as its proof-of-stake mechanism and its purpose and use.

The decision could impact other legal matters, such as the XRP appeal case, by clearly distinguishing between the asset and its sales. Cochran said that the SEC’s potential approval doesn’t mean all crypto assets are non-securities, but it does signify that the SEC is conceding that a line exists, leading to further litigation over where that line is drawn.

Quoting Cochran’s tweet, crypto lawyer John Deaton said: “If the SEC approves an ETH Futures ETF, I agree it is favorable to any potential appeal involving XRP.”