Jake Chervinsky, a lawyer with over five years of experience working with Ethereum, recently voiced skepticism over the approval of an Ethereum exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC).
Jake Chervinsky, a lawyer with over five years of experience working with Ethereum, recently voiced skepticism over the approval of an Ethereum exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC).
Despite his personal desire to gain ETF approval, Chervinsky outlined several objective reasons for his bearish outlook.
He highlighted the SEC’s apparent disinterest in cryptocurrency technology, political pressures, and the agency’s focus on market correlation issues as major obstacles.
As Guru-Investingreported, the Ethereum ETF approval odds recently fell to just 24%.
SEC Political Stance and Influence
Chervinsky’s observations point to a broader sentiment within the SEC that is unfavorable toward cryptocurrencies.
He notes that the SEC sees little value in crypto technology and sees opposition to it as politically beneficial.
This stance is reinforced by pressure from progressive politicians and critics who have opposed previous Bitcoin ETF approvals by the SEC.
Chervinsky argues that the SEC’s decision-making is heavily influenced by political agendas, rather than the intrinsic merits of the cryptocurrency market or its underlying technologies.
Uncertainty in approval
The attorney also discusses SEC rationale related to market dynamics, specifically the correlation between spot and futures markets.
Although Grayscale won its lawsuit last year, Chervinsky believes the SEC may still find new reasons to deny the lawsuit that have not been legally proven.
Furthermore, it indicates that the SEC’s current lack of action on the necessary details of approval and its focus on market correlation could be a strategy to strengthen its position in the face of a possible denial.
However, he also mentions that the coming weeks may provide clearer signals of the SEC’s intentions, as was the case with the Bitcoin ETF approval process.
