The U.S. Securities and Exchange Commission’s (SEC) sudden reversal on its stance regarding Ethereum spot ETF has left many puzzled. According to sources cited by The Block, this may be a purely political decision as the U.S. President Biden, who is seeking re-election, is urgently in need of the votes of young people.
According to The Block’s report, an insider revealed that the SEC’s Division of Trading and Markets called various exchanges on Monday to inform them 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.
The source stated that the issuer responsible for the S-1 (Registration Statement) document also started calling the SEC thereafter. 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 19b-4, while the Division of Corporation Finance is responsible for reviewing S-1. Both must pass for the Ethereum spot ETF to be officially issued.
Some insiders speculate that this change in attitude by the SEC may be driven by political motives, as the U.S. presidential election is approaching. Currently, Trump has publicly expressed support for cryptocurrencies in the past month, stating, “If you support cryptocurrencies, you better vote for me.” He also announced earlier this week that his campaign will start accepting cryptocurrency donations, vigorously attracting support from voters in favor of Web3.
The source stated that they would not be surprised if cryptocurrencies become a campaign issue. Ji Kim, General Counsel and Head of Global Policy at the Crypto Innovation Committee, stated that what members of Congress hear from voters is that cryptocurrencies are not just important, but very important. They hope to regulate the cryptocurrency field.
Ji 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 may become a crucial swing voting group.