The US Securities and Exchange Commission (SEC) is set to announce its final ruling on VanEck’s spot Ethereum ETF this week. This decision could be determined by a single vote, drawing parallels to SEC Chairman Gary Gensler’s vote in favor of spot Bitcoin ETFs in January. On May 23, the same five commissioners will cast their votes, and their positions on cryptocurrency may provide some insights into the potential outcomes.
Here is an overview of the key SEC members and their stances on cryptocurrency:
– Hester Peirce, also known as “Crypto Mom,” has consistently been a supporter of cryptocurrencies. While her vote on the spot Ethereum ETF is yet to be confirmed, her involvement with the Ethereum community and criticisms of the SEC’s regulatory approach suggest that she may vote in favor.
– Caroline Crenshaw, another SEC member, has been openly critical of the cryptocurrency industry. She opposed the approval of spot Bitcoin ETFs, expressing concerns about market manipulation and lack of regulation. There is no indication that her stance has changed, making it likely that she will vote against the spot Ethereum ETF.
– Mark Uyeda, like Peirce, has criticized the SEC’s regulatory tactics. Despite concerns about the decision-making process, he voted in favor of spot Bitcoin ETFs. His position on the spot Ethereum ETF remains uncertain, but his support for spot Bitcoin ETFs suggests that he might be inclined to approve.
– Jaime Lizarraga has opposed spot Bitcoin ETFs and expressed doubts about the role of cryptocurrencies in financial inclusion. He considers most cryptocurrencies to be securities and believes they operate illegally, making it unlikely that he will support the spot Ethereum ETF.
– Chairman Gary Gensler voted in favor of spot Bitcoin ETFs, possibly influenced by Grayscale’s successful appeal against the SEC. However, his stance on the spot Ethereum ETF is less clear. Gensler has avoided clarifying the regulatory status of ETH and faces pressure from an ongoing investigation into its classification.
The potential outcomes of the SEC’s decision and their impact on the market are significant. Gensler’s vote is crucial and could be decisive. The SEC’s approach to spot Ethereum ETFs is being closely scrutinized, as there are mixed signals coming from within the commission. Some fund managers anticipate a rejection, citing the SEC’s lower engagement compared to spot Bitcoin ETF applications.
Bloomberg analysts Eric Balchunas and James Seyffart predict a 25% chance of approval for at least one spot Ethereum ETF on May 23. This represents a significant decrease from the 70% likelihood at the beginning of the year.
It is no surprise that the SEC’s decision will have significant implications for the cryptocurrency market. An approval could validate ETH as an investment asset, similar to what happened with the approval of the spot Bitcoin ETF. On the other hand, a rejection would further intensify the regulatory challenges faced by cryptocurrencies in the US.
Please note that the information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
