The US Securities and Exchange Commission (SEC) has made an unexpected turnaround in its stance on Ethereum spot ETF, leaving people puzzled. According to a report by The Block citing insiders, this could be a purely political decision as the US President, Biden, who is seeking re-election, urgently needs the votes of young people.
According to The Block, an insider revealed that the SEC’s Division of Trading and Markets made phone calls to various exchanges on Monday, stating that they will approve the 19b-4 (exchange rule change) application regarding the Ethereum spot ETF this week. This is in stark contrast to the situation two weeks ago, when the SEC informed the issuers otherwise.
Insiders said that after this, the issuers responsible for the S-1 (registration statement) documents also began calling the SEC. However, according to insiders, there seems to be a discrepancy between the SEC’s Division of Trading and Markets and the SEC’s Division of Corporation Finance. The Division of Trading and Markets is responsible for reviewing the 19b-4, while the Division of Corporation Finance is responsible for reviewing the S-1. Both must be approved for the Ethereum spot ETF to be officially launched.
Could the 180-degree change in attitude be related to the presidential election?
Some insiders speculate that the SEC’s change in attitude may be politically motivated, as the US presidential election is approaching. Trump has publicly supported cryptocurrencies in the past month, stating, “If you support cryptocurrencies, you’d better vote for me.” He also announced earlier this week that he will start accepting cryptocurrency donations, actively attracting votes from Web3 supporters.
Insiders said they would not be surprised if cryptocurrencies become a campaign issue. Ji Kim, Chief Legal Officer and Global Policy Director of the Crypto Innovation Committee, stated that what members of Congress hear from voters is not that cryptocurrencies are just important, but that they are very important. They want regulation in the cryptocurrency field.
Kim added that a nationwide survey conducted by the Crypto Innovation Committee showed an unusual split in voting between the presidential and congressional elections, indicating that cryptocurrency voters could become a key swing voting group.