The SEC approved ethereum ETFs through delegated authority, a decision that could significantly affect the cryptocurrency market. Unlike the approval of the bitcoin ETF in January, which required an SEC vote, this approval did not go through a public voting process by the commissioners. This approval method, as x.com/JSeyff/thread/1793768108018266344″>noted by James Seyffart, means any commissioner, like Crenshaw, can request a review, although that would not alter the decision.
The lack of a public vote has raised questions about the political forces within the SEC. Seyffart points out that while delegated authority is the norm for many decisions, the lack of transparency in this case leaves room for speculation about the commissioners' positions. According to Seyffart, the absence of a detailed voting record obscures the political lines drawn during the approval process.
Gabriel Shapiro of MetaLeX x.com/lex_node/status/1793761121335218188″>commented on procedural nuances, pointing out that only 19b-4s were approved, not S-1s, arguing that this technical distinction explains why ethereum did not see a significant price increase following the news and suggesting that it could still be denied.
This community confusion led Bloomberg ETF expert Eric Balchunas to x.com/ericbalchunas/status/1793785014598906172″>confirm that the approval process was standard and would not be “challenged in any meaningful way.” Balchunas reiterated that although the approval is final, the procedural method used was typical of the SEC. He suggested the weak market reaction was due to the expected approval, especially after major news earlier in the week.
The approval of ethereum ETFs means a potentially positive outlook for future crypto ETF applications. However, the SEC's delegated authority process has sparked debates about the need for greater transparency by the SEC and the potential political influences behind such decisions.
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