Joseph Lubin says that the approval of Ethereum ETFs is evolving into a significant political matter.

Early-stage applications for spot Ether exchange-traded funds (ETFs) in the United States are on the brink of approval, according to Consensys CEO Joseph Lubin. Lubin stated that several 19b-4 applications, including those from BlackRock, are likely to be approved by the U.S. Securities and Exchange Commission (SEC). However, the public launch of these ETFs may take longer to materialize. Lubin also revealed that representatives from Donald Trump’s presidential campaign have been engaging with participants in the cryptocurrency ecosystem for over two months. He believes that both presidential campaigns will want to show support for cryptocurrencies due to the influence of crypto-savvy supporters. As the U.S. presidential elections approach, Lubin stated that the SEC is under increasing pressure to adopt a more neutral stance. He hopes that the potential approval of Ether ETFs will encourage the SEC to become a more thoughtful regulator. Lubin emphasized that it is important not to disregard the portfolios of the large percentage of the voting public that holds digital assets, as well as institutions, pension funds, and other conserved funds. Consensys previously announced its legal proceedings against the SEC in April, challenging the regulator’s undisclosed move to reclassify Ether as a security. Lubin noted that interactions with the previous SEC regime were more constructive, with open discussions about the classification of Ether and other cryptocurrencies. However, the situation changed when Gary Gensler became SEC chair, and Lubin believes that high-level banking and government factions have worked together to co-opt the Ethereum ecosystem. Consensys has already provided the SEC with over 100,000 pages of documentation, but it decided to take legal action due to concerns that the regulator was shifting its focus towards MetaMask, staking, developers, the Ethereum protocol, and the move to a proof-of-stake consensus. The recent SEC lawsuits against Binance and Coinbase, along with the Wells notice letters issued to players like Uniswap, were catalysts for Consensys’ decision to challenge the securities regulator. Lubin stated that this decision allows Consensys to seek answers about the SEC’s actions over the past year and forces Gensler to take a definitive stance on whether Ether should be classified as a commodity or security. Lubin criticized the SEC for gaslighting the cryptocurrency sector and perpetuating a cloud of regulatory uncertainty. Despite this, Consensys is fully committed to taking on the SEC and is prepared to invest tens of millions of dollars in its legal battle.