SEC Commissioner Believes Court Case Is Not Necessary For Spot Ether ETF Approval

US SEC Commissioner Hester Peirce opines that obtaining approval for spot Ether ETFs will not necessitate a legal battle. In response to a recent inquiry about whether the SEC will defer spot Bitcoin ETF approvals until a court case progresses through the legal system, Peirce emphasized that such an approach is not part of their approval process.

According to Peirce, the SEC should apply standard considerations to these products, similar to how they evaluate other comparable products. She emphasizes that the approval process should not rely on a court determining the arbitrariness and capriciousness of their approach. This statement follows the recent SEC approval of nearly a dozen spot BTC ETFs, which, while not entirely unexpected, raised uncertainties about the fate of spot Ether ETFs.

Criticizing The SEC

Entities like BlackRock, Ark 21Shares, and Grayscale have expressed interest in spot Ether ETFs. Grayscale, mirroring its strategy with the spot Bitcoin ETF, seeks to convert its Ethereum Trust into an ETF. However, SEC Chair Gary Gensler, in his comments on spot Bitcoin ETF approvals, expressed reservations about further approvals, emphasizing that the recent decision pertains specifically to ETPs holding one non-security commodity, namely Bitcoin.

Senator Warren has criticized the approval by the SEC pertaining to the Bitcoin ETFs, stating that the Commission is wrong on the law. The stance taken by Gensler indicates a cautious approach to approving listing standards for crypto asset securities.

Peirce Supports Crypto

Contrary to Gensler, Peirce believes that the SEC missed numerous opportunities over the past decade to approve these products. She argues that if the agency had applied the standards used for other commodity-based ETPs, these products could have been approved years ago. Peirce asserts that the reluctance shown by the regulatory agency persisted until a court intervention forced them to reconsider.

Known for her outspoken views on the stringent crypto approach adopted by both Gensler and the SEC in general, Peirce previously called out the enforcement-focused regulation strategy of the agency, stating that there appears to be a lack of coherence in many of the cases brought forward.