Galaxy Research Director: SEC may seek a balance between non-securities ETH and securities-collateralized ETH in Ethereum ETF approval

Alex Thorn, the research director of Galaxy Digital, stated on X platform that if the speculation about the US Securities and Exchange Commission's (SEC) 180-degree turn on Ethereum ETF is true, he believes they will try to find a balance between the fact that "ETH" itself is not a security, while "pledged ETH" (or more loosely, "staking ETH as a service") is a security. This is consistent with their various litigation cases and reports on investigations, and may allow the SEC to approve Ethereum ETF while maintaining their previous statements and arguments. In this case, and possibly for other reasons, you may expect the SEC to prohibit these ETFs from staking the ETH they hold.