While the U.S. regulatory body has approved a Bitcoin spot exchange-traded fund (ETF), the likelihood of more crypto ETFs like XRP’s remains uncertain.
This uncertainty is discernible from the divide within the U.S. Securities and Exchange Commission (SEC) leadership regarding the just-approved Bitcoin spot ETF.
Specifically, only three of five SEC commissioners cast affirmative votes for the first crypto spot ETF to be approved.
It included commissioners Hester Peirce, Mark Uyeda, and chairman Gary Gensler. In contrast, commissioners Caroline Crenshaw and Jaime Lizárraga voted against the approval of the Bitcoin spot ETF.
Why XRP’s Case Hangs on the Balance
Amid the voting divide, well-known pro-XRP legal expert Bill Morgan pointed out the fate of an XRP ETF. In the lawyer’s words: “You need a vote from Gary Gensler to approve a spot Ethereum or XRP ETF. Let that sink in.”
Let’s just consider this divided 3-2 vote on the BTC spot ETF approval in terms of an applicant seeking approval of a spot #Ethereum ETF or XRP ETF
Gensler: Approved
Peirce: Approved
Uyeda: Approved
Crenshaw: Not Approved
Lizárraga: Not ApprovedYou need a vote from Gary…
— bill morgan (@Belisarius2020) January 11, 2024
Notably, commissioners Peirce and Uyeda, who voted to approve the Bitcoin spot ETF, have gained recognition for their resistance to the SEC’s negative measures against cryptocurrencies. For instance, they opposed the SEC’s decision to deny Coinbase’s petition for rulemaking last December.
Meanwhile, the SEC chairman, who also voted in favor, is notorious for his less-than-favorable stance on cryptocurrencies. Essentially, Bill Morgan aimed to highlight that the destiny of any crypto ETF under the current SEC leadership hinges on Gary Gensler’s blessing.
This is because Peirce and Uyeda have demonstrated a higher tendency to vote in favor, contrasting Gensler’s stance and the two other commissioners.
Besides, the SEC chairman has affirmed that he reluctantly voted for Bitcoin spot ETF approval amid mounting legal defeats. In his words:
“The U.S. Court of Appeals held that the Commission failed to adequately explain its reasoning in disapproving the listing and trading of Grayscale’s proposed ETP. Based on these circumstances, I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares.”
Considering Gensler’s unyielding position, Bill Morgan stressed that any confidence in swift approval of an Ethereum or XRP spot ETF “is misplaced.”
Moreover, the legal expert is not alone in holding this view. Bloomberg analyst James Seyffart has also asserted that obtaining approval for an XRP ETF would likely require a new SEC chairman.
