Pro-XRP attorney John Deaton recently expressed his astonishment over the SEC's sudden change of heart regarding the approval of spot Ethereum ETFs. On his social media account, Deaton aligned with Charles Gasparino, who labeled this as the "most significant regulatory reversal in recent SEC history."

Unexpected Shift in Spot Ethereum ETF Approval

At the beginning of the month, Bloomberg analysts estimated the chances of spot Ethereum ETFs being approved at about 25%. However, this outlook dramatically shifted a few days ago, with approval odds skyrocketing to 75%.

Deaton analyzed this change, pointing out that considering the SEC’s stringent regulatory actions over the past four years, along with Senator Elizabeth Warren's anti-crypto stance, this move to approve a spot Ethereum ETF represents an extraordinary turnaround. Deaton also reflected on his efforts over the years that have contributed to the current outcomes.

Historical Context and Legal Battles

When SEC Chairman Gary Gensler took office, he inherited the Ripple lawsuit from his predecessor, Jay Clayton. In this case, Deaton showed his dedication by representing XRP holders, which led to Judge Analisa Torres ruling last year that XRP is not an investment contract.

Despite the SEC’s scrutiny of Ethereum, which hinted at potential regulatory hurdles, the clear classification of Ethereum remained ambiguous. Many believed this uncertainty contributed to the previous rejections of a spot Ethereum ETF. However, recent interactions with stakeholders advocating for an Ethereum ETF indicate a shift in the political landscape influencing these decisions.

Political Influences and Future of Crypto Regulation

Crypto industry leaders argue that the regulatory environment in the United States has become highly political. To effect change, John Deaton is running for election, aiming to replace Senator Elizabeth Warren. Garnering support from various crypto industry figures, Deaton is optimistic about his potential to drive change if he enters politics.

In the meantime, the crypto industry must adapt to new realities, including the potential for spot Ethereum ETFs to be traded on national exchanges. This development marks a significant evolution in the regulatory and trading landscape for cryptocurrencies.