Crypto Mom Asserts Spot Ethereum ETFs Can be Approved Without Resorting to Lawsuits

Crypto News- In a candid interview with Coinage Media on January 24, SEC Commissioner Hester Peirce, affectionately known as “Crypto Mom,” dismissed the notion of relying on lawsuits to secure approval for spot Ether (ETH) exchange-traded fund (ETF) applications. Emphasizing a commitment to rectifying regulatory approaches without external legal pressure, Peirce referenced the Grayscale court ruling that paved the way for spot Bitcoin ETF approvals in the U.S.

Crypto Mom Asserts Spot Ethereum ETFs Can be Approved Without Resorting to Lawsuits

Peirce elucidated, “We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right.” While acknowledging the relevance of the Grayscale precedent, she acknowledged the nuanced nature of each ETF application.

Speaking on the complexities of bringing an exchange-traded product to market, Peirce emphasized the significance of aligning disclosures with the product’s functionality. Reflecting on the court’s critique of the SEC’s previous approach, she remarked, “Having heard from a court that the approach we were taking was wrong […] I think that kind of a lesson will certainly stick with us.”

Notable entities such as BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex are eagerly awaiting SEC approval for their spot Ether ETF applications. Bloomberg ETF analyst Eric Balchunas estimated a 70% likelihood of spot Ether ETF approval by May.

Key deadlines for decisions loom, with VanEck, ARK 21Shares, Hashdex, Grayscale, and Invesco facing determinations by May 23, May 24, May 30, June 18, and July 5, respectively. Fidelity and BlackRock’s applications are in contention for approval by August 3 and August 7.

SEC Commissioner, “Crypto Mom” Peirce, Rules Out Lawsuits for Spot Ether ETF Approval

While Balchunas expressed optimism for Ether ETF approval, Morgan Creek Capital’s CEO Mark Yusko remained cautious, predicting less than a 50% chance of approval. Yusko attributed the skepticism to the SEC’s perceived hostility toward the crypto industry.

Notably, SEC Chair Gary Gensler emphasized in a January 11 letter that approving a spot Bitcoin ETF should not be interpreted as a blanket approval for other cryptocurrency ETFs. He underscored the majority of crypto assets’ classification as investment contracts subject to federal securities laws, maintaining a cautious stance towards broader industry approvals.