Will the U.S. SEC Bypass ‘Security’ Concerns to Approve Spot Ethereum ETF?

As soon as the U.S. SEC asked issuers of spot Ethereum ETF to submit their 19b-4 filings, the market was abuzz with the news that the likelihood of approval had increased considerably. So far, the uncertainty around Ethereum’s ‘security’ status has proved to be a major roadblock for the ETF approval. However, with the SEC reaching out to issuers for 19b-4 filings, the question arises whether the regulator is willing to bypass the previous concerns.

SEC May Differentiate Between ETH and Staked ETH

Galaxy researcher Alex Thorn has weighed in on the speculation surrounding the SEC’s stance on Ethereum ETFs. Thorn suggests that if the SEC is considering a reversal, they might distinguish between Ethereum (ETH) itself and staked Ethereum (stETH) or “staking as a service ETH” as securities.

Thorn notes that this approach could align with the SEC’s ongoing court cases and investigations, potentially allowing the approval of Ethereum ETFs while maintaining the agency’s previously stated opinions. This nuanced differentiation could pave the way for regulatory acceptance of Ethereum ETFs.

Crypto investor Anthony Pompliano has stated that the approval of an Ethereum ETF would mark a pivotal moment for the cryptocurrency industry. “If they approve the Ethereum ETF, they are approving the entire industry,” Pompliano remarked, suggesting that such a decision would break the final barrier to widespread regulatory acceptance.

However, questioning his euphoria surrounding the approval of spot Ether ETF, crypto enthusiast @AdamAssets writes: “I can’t imagine. ETH foundation so blatantly bucked at securities laws. Literally free pass for anyone to sell unregistered investment contracts from that point forward”.

ETH Price Action

Although the Ethereum price has rallied by over 20% in the last 24 hours, the volatility will continue until there’s an official statement from the SEC.

QCP Capital noted that if the SEC approves the spot Ether ETF, the ETH price can easily rally past $4,000 and even further to $5,000. However, in the case of a denial, it could slip to $3,000.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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