The cryptocurrency market is abuzz with anticipation as issuers and investors eagerly await the potential launch of an Ethereum Exchange-Traded Fund (ETF). Recent developments in the regulatory landscape, particularly the approval of a Bitcoin ETF, have raised hopes for an Ethereum ETF’s green light.
However, amid optimism, there are also indications of internal resistance within the U.S. Securities and Exchange Commission (SEC).
SEC’s stance and internal resistance on Ethereum ETF
Despite the successful launch of the Bitcoin ETF, insiders reveal that the SEC is facing internal resistance regarding the approval of an Ethereum ETF. Sources close to the commission have indicated a prevailing “hard no” sentiment towards the proposal.
This internal resistance stems from concerns and deliberations within the regulatory body, suggesting that the path to approval may not be as straightforward as some had hoped.
Regulatory commissioner’s perspective
Hester Pierce, a Republican Commissioner within the SEC, has been a vocal advocate for cryptocurrency ETFs, including Bitcoin, well before its recent approval. Pierce asserts that the SEC must apply a “regular way” consideration to Ethereum ETFs to avoid repeating the delays seen with Bitcoin ETFs.
Her stance suggests a commitment to streamlining the regulatory process and providing clarity for the growing cryptocurrency market.
Summer expectations and regulatory classification
Despite internal resistance, there remains optimism among issuers and other sources that an Ethereum ETF could see the light of day by the end of the summer. This optimism is grounded in several factors, one of which is the Commodity Futures Trading Commission’s (CFTC) classification of Ethereum as a “commodity.”
This classification distinguishes Ethereum from securities, potentially paving the way for a more favorable regulatory outlook.
XRP’s landmark victory and Ripple’s influence
Another significant factor contributing to the optimistic outlook for an Ethereum ETF is XRP’s recent legal victory against the SEC. The court ruling that XRP is not a security during secondary market transactions has implications for the broader cryptocurrency market.
Prominent XRP attorney John Deaton believes that this victory, coupled with Ripple’s influence, could make it challenging for SEC Chairman Gary Gensler to classify cryptocurrencies as securities.
Issuer’s confidence post-Bitcoin ETF approval
a Bitcoin Spot ETF issuer that also holds an Ethereum Spot ETF has reiterated its confidence in the SEC’s eventual approval of Ethereum ETFs. They argue that the successful approval and smooth launch of Bitcoin Spot ETFs should compel the SEC to follow suit with Ethereum Spot ETFs.
This issuer’s stance reflects the broader sentiment in the cryptocurrency industry, where stakeholders see the approval of one ETF as a positive precedent for others.
Source: https://www.cryptopolitan.com/ethereumetf-approvaluncertaindespiteoptimism/