Jake Chervinsky, a lawyer with over five years of experience working with Ethereum, recently voiced skepticism about the approval of an Ethereum exchange-traded fund (ETF) by the U. S. Securities and Exchange Commission (SEC).
Despite his personal desire for the ETF’s approval, Chervinsky outlined several objective reasons for his bearish outlook.
He stressed the SEC’s apparent disinterest in cryptocurrency technology, political pressures and the agency’s focus on market correlation issues as significant hurdles.
As reported by U. Today, Ethereum ETF approval odds recently plunged to just 24%.
Chervinsky’s observations point to a broader sentiment within the SEC that is unfavorable toward cryptocurrencies.
He notes that the SEC perceives little value in crypto technology and views opposition to it as politically beneficial.
This stance is reinforced by pressure from progressive politicians and critics who have opposed previous SEC approvals of Bitcoin ETFs.
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.
The lawyer also discusses the SEC’s 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 grounds for denial that have not been legally tested.
Furthermore, he indicates that the SEC’s current lack of action on the necessary approval details, and its focus on market correlation, could be a strategy to strengthen its position for a potential denial.
However, he also mentions that upcoming weeks may provide clearer signals of the SEC’s intentions, as was the case with the Bitcoin ETF approval process.