According to a report by The Block citing people familiar with the matter, the SEC’s positive attitude towards the Ethereum spot ETF data review a few days ago may be due to political factors, to create a visionary and open image for the current US President Biden, and to prepare for the upcoming Paving the way for the upcoming US election.
(ETH has continued to gain momentum, opinion: Passing the ETH ETF will bring an epic victory to the cryptocurrency)
People familiar with the matter: Lack of coordination within SEC, approval will be political factors
Recently, media from various countries almost simultaneously claimed that the SEC has been calling exchanges one after another, requesting that Ethereum spot ETF 19b-4 documents be submitted as soon as possible before tomorrow (23), and even revealed that they are inclined to approve these documents.
With the SEC's major change in attitude within two weeks, Bloomberg ETF analysts have flipped the odds of passing the Ethereum spot ETF. Many benefits have injected volatility into the long-sluggish crypto market, and Ethereum-related tokens have emerged one after another. increase.
However, people familiar with the matter said there appeared to be a divergence between the responsibilities of the SEC’s financial division reviewers and the agency’s trading and markets division:
It is reported that the unit contacting each exchange is the finance department responsible for S-1 filings, not the trading and markets department responsible for approving Form 19b-4.
He believes that the responsibilities of the SEC’s Finance Department and the Trading and Markets Department seem to be confusing and uncoordinated, and this is an unprecedented situation, which means that there may be political interference in the final decision on the Ethereum spot ETF:
They have not even coordinated internally, which is why all the good news released now is likely to be due to political considerations.
Will Ethereum Spot ETF Become a Campaign Chip?
In addition, facing the potential reasons and motives behind it, the person speculated that it was related to the upcoming US election.
political level
Many reports and news show that former President Trump clearly expressed a friendly stance towards cryptocurrency:
The former president told the crowd buying his NFT that current US President Joe Biden doesn’t know what cryptocurrency is.
(Trump accepts cryptocurrency donations, MAGA crypto army will promote campaign victory)
In response, the source said that he would not be surprised if the Ethereum spot ETF debate became a campaign issue:
The Democratic Party needs the votes of the younger generation, and President Biden can indeed gain an advantage through the SEC’s approval of an Ethereum spot ETF.
He added, "From a campaign perspective, Biden's best position is as an octogenarian with a vision."
(Trump leads Biden in 2024 polls. Looking back at the Republican Trump administration, is it “crypto-friendly”?)
policy level
In addition, Ji Kim, legal policy director of the Cryptocurrency Innovation Council, also pointed out through national polls that American voters want the cryptocurrency field to be regulated:
We also found a rare split between the presidential vote and Congress, indicating that cryptocurrency issues remain important to candidates.
In other words, cryptocurrency users and communities may also become crucial swing voters in this election.
Insider: SEC is now rushing for papers
Finally, a person familiar with the situation commented on the current status of the SEC's work, saying that the agency is now rushing to write papers:
Given the tight deadline, it's like they're writing a paper the night before it's due, so their comments on Form 19b-4 will be fairly brief.
(Coinbase: The key to Ethereum spot ETF approval lies in the pledge, and the SEC will not approve everything at once)
This article The Block: Ethereum spot ETF will become a political bargaining chip, and the SEC is like rushing to write papers the night before the deadline first appeared on Chain News ABMedia.
