House Lawmakers Push for SEC Approval of Ethereum Spot ETFs as Regulatory Attitudes Shift

A group of lawmakers in the House has called on the SEC to approve Ethereum Spot ETFs. Recently, the Biden administration’s stance on cryptocurrencies has become somewhat more lenient, as the White House opposed. This shift may be influenced by former President Donald Trump’s recent openness to cryptocurrencies, including accepting campaign donations in eight different cryptocurrencies for the upcoming November election.

Despite the SEC’s approval of Ethereum Spot ETFs, analysts predict they may face challenges in attracting investor interest. Bloomberg ETF analyst Eric Balchunas suggests that Ethereum ETFs might only attract 10 to 15% of the assets that their Bitcoin counterparts receive, translating to around $5 to $8 billion.

Following the SEC’s approval, Brian Kelly appeared on CNBC and predicted that Solana (SOL) could be the next cryptocurrency to get an ETF. At the time of writing, after the news of the approval, ETH is trading at $3,830, down slightly by 0.1% in the past hour.

The SEC’s approval of Ethereum Spot ETFs could signal that the agency tacitly acknowledges that ETH is not a security, contrary to its previous stance. If ETH were considered a security, the SEC would need a different approval process. This could represent a significant victory for Ethereum supporters and the broader cryptocurrency market.

Coinbase’s chief legal officer also remarked that the SEC’s approval of the ETH ETF confirms that ETH is recognized as a commodity, not a security. Just a few weeks ago, Consensys filed a lawsuit against the SEC, alleging that the agency had secretly regarded ETH as an unregistered security for over a year. Pressure from the administration and other stakeholders may have influenced the SEC’s decision.

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