Crypto lawyer presents 3 compelling reasons for the SEC’s potential interest in Ethereum

A crypto lawyer suggests that the reported investigation into Ethereum and the Ethereum Foundation by the SEC could be a strategic move to reject spot Ether (ETH) ETFs without undermining its ongoing legal battles. The lawyer believes that the SEC may be using the probe to appease critics and senators who have called for stricter regulations. One theory is that the SEC could use the investigation as grounds to deny spot Ethereum ETFs based on non-correlation objections. However, the lawyer notes that this may only be a temporary solution, as correlation levels are improving over time. Additionally, denying spot Ethereum ETFs would not undermine the SEC’s legal actions against Coinbase and Binance. The lawyer suggests that the SEC could take a “soft approach” by maintaining an ongoing investigation into ETH’s security status instead of taking definitive enforcement action.