Galaxy Research Director: If the SEC approves the Ethereum spot ETF, it may prohibit it from pledging ETH

Alex Thorn, head of research at Galaxy Digital, wrote on the X platform that if the speculation about the US SEC's 180-degree turn on the Ethereum ETF is true, they may try to find a balance between the following two: "ETH" itself is not a security, and "pledged ETH" (or "pledged ETH as a service") is a security. This is generally consistent with the agency's various lawsuits and reports on investigations, and may allow the SEC to maintain its previously stated and argued views while approving the Ethereum ETF. In this case, the SEC may prohibit the ETF from pledging its ETH holdings.