Law & Policy

1/2 For those who believe that the SEC will deny the ETH spot ETF in May, what is your best guess as to the SEC’s justification for the denial?

Personally, I don’t see a plausible justification. The SEC already approved ETH Futures ETFs, so I don’t see how they justify denying a spot ETF of the same product.

Crypto, F1, and Lawyering account for 90% of my waking hours

2/2 Inconsistent treatment of future and spot ETFs would recreate the same fact pattern that caused the DC Circuit to strike down the SEC’s initial denial of spot ETFs for BTC. 

I understand that the SEC may have political motives but they still need some colorable basis for a denial. What am I missing?

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Thanks. And sorry if I'm misunderstanding, but wouldn't each of those reasons apply to the futures ETF? 

They seem like totally valid reasons to deny an ETF, but I just don't understand how to square the approval of the futures ETF with a denial of the spot ETF.

Less robust and mature futures market; greater volatility and perceived manipulability; transition to proof of stake raises centralization risks.

biotech software engineer // farcaster OG // fid 589

The SEC waived the “ETH is a security” argument when they approved the ETH futures ETF. 

Not saying they won’t try it, but they’ll get laughed out of court if that’s the basis for their denial

not an expert, but the SEC chair has conceded that BTC is not a security, but refuses to do the same regarding ETH

perhaps it’s related?