According to BlockBeats, Alex Thorn, the Research Director at Galaxy Digital, expressed on May 21st that if speculations about a drastic change in the U.S. Securities and Exchange Commission's (SEC) stance on Ethereum ETFs are true, they might attempt to strike a balance between the two: 'ETH' itself is not a security, but 'staked ETH' (or more tenuously, 'staked ETH as a service') is a security. This aligns with their various lawsuits and related investigative reports, and could potentially allow the SEC to approve Ethereum ETFs while maintaining their previously stated and argued viewpoints. In this scenario, the SEC might prohibit ETFs from staking their held ETH.
