The SEC is under scrutiny for potentially delaying the approval of spot Ethereum ETFs, with Coinbase's legal officer arguing there is no valid reason for denial. Reports suggest the SEC's cautious stance and investigation into Ethereum's classification as a security could be contributing to the delay. Grayscale's Ethereum Futures Trust ETF decision has been postponed, raising doubts about the approval timeline. The ongoing debate surrounds whether Ethereum should be classified as a security or a commodity, with implications for ETF approvals.