SEC Commissioner Hester Peirce has indicated that a lawsuit won’t be necessary for the U.S. Securities and Exchange Commission (SEC) to approve spot Ethereum ETFs. Her comments suggest a proactive approach by the SEC, moving away from previous hesitations.
In a recent interview, Peirce emphasized that the SEC should not require a court ruling to correct its approach, referencing the Grayscale court decision that approved spot Bitcoin ETFs.
This signifies a potential shift in the SEC’s methodology towards cryptocurrency ETFs, applying the Grayscale precedent. However, Peirce acknowledged that each ETF application is unique and demands thorough examination.
While some industry experts, like Bloomberg’s senior ETF analyst Eric Balchunas, estimate a 70% chance of spot Ether ETF approval by May, others remain skeptical. Morgan Creek Capital’s CEO, Mark Yusko, predicts a less than 50% chance, citing the SEC’s cautious stance towards the crypto industry.
The SEC is set to make decisions on several applications in the coming months, including those from VanEck, ARK 21Shares, and Grayscale. The industry remains hopeful despite SEC Chair Gary Gensler’s caution in interpreting the approval of a spot Bitcoin ETF as a green light for other cryptocurrency ETFs.
Gensler’s statement underscores the SEC’s commitment to treating each crypto asset within the scope of federal securities laws, maintaining a careful and measured approach to new ETF approvals.
Also Read: SEC Commissioner Hester Peirce Opposes Crypto Bailouts
