Regulation
Election Implications: How US Politics Could Affect Ethereum ETF Approvals
Eric Balchunas, senior analyst at Bloomberg specializing in exchange-traded funds (ETFs), sheds light on the uncertain fate of spot Ethereum exchange-traded funds (ETFs) in the United States. Although the Securities and Exchange Commission (SEC) has approved Bitcoin spot ETFs, Ethereum’s regulatory landscape presents unique hurdles that could delay its approval.
Analyzing the obstacles to the approval of the Ether ETF
In an interview with DL News, Balchunas is seen as skeptical that the SEC is likely to approve cash ETFs before the May 23 deadline. He highlights the limited interaction between the SEC and potential ETF issuers, regulatory ambiguities around Ethereum’s classification, and the SEC’s ongoing investigation into the Ethereum Foundation.
Read also : Ethereum Price Under Threat As Critical ETF Decision Approaches: What’s Next for ETH Price?
Echoes of Bitcoin ETF approval not reflected for Ethereum
While the SEC relented on spot Bitcoin ETFs after legal pressure from Grayscale, Balchunas does not expect a similar scenario for Ethereum. He highlights the guarded attitude of potential issuers in filing lawsuits against the SEC, comparing them to Grayscale. Additionally, the upcoming US elections bring more uncertainty as changes at the top of the SEC could influence future cryptocurrency regulations.
The Intersection of Crypto Politics and Regulation
Speculating on the impact of the election, Balchunas says former President Donald Trump’s second term could lead to a more crypto-friendly SEC chairman. In fact, this would lead to a potential shipment of Ethereum ETF approvals. However, uncertainties remain over Trump’s stance on cryptocurrencies, regardless of supportive signals. Furthermore, analysts predict an upward trend in Bitcoin prices under the Trump administration. However, this must be done with caution, given past decisions by the SEC.