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More industry experts are seeing the approval of spot Ethereum ETFs as having become a political issue, considering recent Congress action and the upcoming elections. Bybit/flickr.com

KEY POINTS

  • Joseph Lubin also revealed that he heard the Trump campaign was trying to come up with a pro-crypto strategy
  • He expects some issuers to receive approval, but doesn't see a public launch anytime soon
  • Some Democrats have shown a more neutral view of cryptocurrencies

The much-anticipated decision of the U.S. Securities and Exchange Commission (SEC) on VanEck's application for a spot Ether (ETH) exchange-traded fund (ETF) is expected Thursday. While there is a general sense of optimism in the crypto industry, a co-founder of the Ethereum blockchain isn't expecting spot ETH ETFs to have the same journey as spot Bitcoin ETFs.

In an interview with Cointelegraph during the DappCon event in Berlin, Joseph Lubin said he sees the SEC approving several applications. However, he said the public launch may not come easy.

"That could drag on for a while. It's not clear that it will. My guess is this is now a giant political issue," he said. He went on to reveal that he heard the presidential campaign of ex-president Donald Trump had been "trying to formulate a strategy," considering how some Democrats are "really savvy supporters" of cryptocurrency.

Lubin, who is also the founder of private blockchain software technology Consensys, believes "the presidential campaign and others will want to appear pro-crypto," seemingly referring to have Trump has been increasingly warming up to the fast-growing sector since earlier this year.

In his latest display of softening up to the industry, Trump's campaign announced Tuesday that crypto donations are now accepted. Voters who want to back the business mogul's presidential run can now donate in various digital assets, including Bitcoin (BTC), ETH, and even using the popular memecoin Shiba Inu (SHIB). He has also said he will "stop" the hostile approach of the regulatory circle toward cryptocurrencies.

Lubin further noted that the SEC appears to be under immense pressure to take a neutral stance, given the nearing elections. Some Democrats just recently displayed more neutrality, with several even urging their colleagues to support a proposed legislation that seeks to establish a regulatory framework for the sector.

Lubin's comments came after Consensys revealed in a filing earlier this month that Gurbir Grewal, the SEC head of enforcement, approved a formal order to investigate Ether's status as a security late in March 2023. Less than a month later, SEC Chair Gary Gensler refused answer the question of a lawmaker during a Congress hearing on whether ETH was a security.

Consensys' revelation triggered outrage among crypto users, demanding that the SEC and Gensler be held accountable for their "misleading" views of the world's second-largest digital asset.

Meanwhile, Lubin isn't the only industry expert who has noticed how the approval of spot ETH ETFs has become a political issue. Bloomberg ETF analyst Eric Balchunas said earlier this week, when reports first emerged that there was progress in discussions over the funds' approval, that the matter has become "increasingly political."

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