Contrary to rumors suggesting a politically motivated decision by the SEC to approve spot Ether ETFs, Bernstein analysts believe the regulator instead acted to avoid a potential legal dispute. The move appears to provide a major boost to the crypto industry.
A decision based on legal rather than political considerations
Bernstein analysts Gautam Chhugani and Mahika Sapra question the theory of Democratic political maneuvering behind the SEC's approval of Ethereum ETFs ahead of the midterm elections.
According to their report, the SEC knew it could not reject Ether ETF applications given the regulatory structure similar to previously approved Bitcoin ETFs.
According to their report, the SEC knew it could not reject Ether ETF applications given the regulatory structure similar to previously approved Bitcoin ETFs.Â
With listed Ether futures products and close correlation between spot and derivatives markets, rejecting Ether ETFs would have exposed the SEC to potentially adverse litigation. The presidential veto on the repeal of a key accounting bulletin of the authority supports this hypothesis of a purely regulatory decision.
âThe SEC undoubtedly adopted a pragmatic approach to avoid a legal confrontationâ deduce the analysts, emphasizing the surprise of the candidates themselves in the face of the unexpected green light.
