SEC approved Ethereum ETFs by delegated authorities, a major decision which could have significant impacts on the crypto market. This approval was not subject to a vote by the SEC, unlike that of Bitcoin ETF in January. The method used to approve the ETF, which is a public vote by commissioners. noted James Seyffart says that any commissioner can ask for a review. This would still not change the original decision.
Lack of public voting has led to questions regarding the SEC’s political factions. Seyffart highlights that while delegated authority is the norm for many decisions, the lack of transparency in this case leaves room for speculation about the commissioners’ stances. According to Seyffart the lack of detailed voting records obscures political lines that were drawn during the approval procedure.
Gabriel Shapiro, MetaLeX commented The article focused on procedural details, pointing out that only S-1s have been granted, and that 19b-4s are not. It argued that this distinction in technical terms explains the reason why Ethereum didn’t experience a substantial price rise following the announcement, and suggested that it still could be denied.
The confusion in the community led Eric Balchunas, a Bloomberg ETF expert, to clarify. confirm that the approval process was standard and wouldn’t be “challenged in any meaningful way.”Balchunas reaffirmed that, while the SEC’s approval was final, its procedural methods were typical. Balchunas suggested the market’s muted reaction to this approval was because it had been expected, particularly after the significant news that came earlier in the day.
Ethereum ETFs are a sign of a new, potentially lucrative market. positive outlook For future crypto ETF application. However, the SEC’s delegated authority process has sparked discussions about the need for greater transparency from the SEC There are many political factors that could influence such decisions.
Post No vote needed for SEC approval of Ethereum ETF in positive sign for other cryptocurrencies First on CryptoSlate.
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Source: cryptoslate.com