The impact of shifting SEC policies on Ethereum (ETH) remains uncertain, according to Bill Hughes, senior counsel and director of global regulatory matters at Consensys. Speaking at the Consensus 2024 conference in Texas, Hughes discussed the potential implications of the political landscape on the U.S. Securities and Exchange Commission’s (SEC) approach to crypto regulations, particularly in the context of the 2024 election.

Hughes highlighted that recent legislative efforts and SEC actions, such as the approval of spot Ether exchange-traded funds (ETFs), are significant but their full impact on ongoing investigations and regulatory theories is yet to be seen. Consensys has filed a lawsuit against the SEC over claims of regulating ETH as a security, following a Wells notice regarding MetaMask Swaps and Staking products.

The approval of spot Ether ETFs suggests a recognition of ETH as a commodity, which contrasts with the SEC’s previous stance. This approval might indicate a shift in the SEC's approach, although the extent of this change is still unclear. Hughes pointed out that the political dynamics within the SEC and external pressures could influence regulatory decisions and policy approaches.

Looking ahead, the U.S. Senate is expected to consider the Financial Innovation and Technology for the 21st Century Act (FIT21), which aims to clarify the SEC’s role and provide the Commodity Futures Trading Commission (CFTC) with authority to regulate many digital tokens as commodities. This legislative development could further impact the SEC’s regulatory framework and its approach to the crypto industry.