Crypto lawyer presents three hypotheses for the SEC’s possible scrutiny of Ethereum.

According to a crypto lawyer, the recent probe into Ethereum and the Ethereum Foundation by the SEC may be a strategic move to deny spot Ether (ETH) ETFs without undermining ongoing lawsuits and satisfying senator blowback. Scott Johnsson, a finance lawyer and general partner of Van Buren Capital, offered his opinion on why the SEC launched the probe. One theory is that the SEC is using it to appease crypto skeptics who have demanded a tougher stance from the agency. Another theory suggests that the SEC is using the probe to reject spot Ethereum ETFs based on non-correlation objections. The SEC needs a non-correlation objection to deny ETH spot ETFs this year, explained Johnsson. He further explained that denying spot ETH ETFs solely based on correlation analysis may only be a temporary solution as correlation levels are improving over time. The probe could also help the SEC avoid undermining its legal action against Coinbase and Binance while denying spot Ethereum ETFs.