SEC's change of heart on Ethereum is "purely political":

The US Securities and Exchange Commission's (SEC) decision on Ethereum may be purely "political".

According to The Block, the SEC had no intention of approving spot Ethereum ETFs until two weeks ago.

However, at the beginning of this week, the institution instructed exchanges and issuers to update their application files.

“This is an unprecedented situation, which means it is completely political,” said an anonymous person.

Before ETFs can be established, first 19b-4 and then S-1 documents will need to be approved. 19b-4 documents are reviewed by the SEC's trading and markets department, and S-1 documents are reviewed by the corporate finance department, which is also affiliated with the institution.

"[The SEC] hasn't even coordinated internally yet, so this is probably a purely political decision," said one person familiar with the matter.

According to some analysts, the SEC's decision changed due to the upcoming presidential elections. Presidential candidate Donald Trump said that his opponent Joe Biden does not even know what cryptocurrencies are and demanded votes from cryptocurrency supporters.

“The problem is that Democrats desperately need young people to get up and vote for them,” one commenter said.

“Voters are not only telling politicians about the importance of crypto, they are also saying they want this space to be regulated,” said Ji Kim, legal director of the Crypto Innovation Council.