Ethereum ETF Rejected Again—SEC Cites “China Exposure”

The SEC shocked markets by rejecting BlackRock’s Ethereum ETF application, citing concerns over “China-based validator exposure.” ETH dropped 11% instantly, sparking chaos on social media. The rejection report highlights possible links between Chinese mining operations and staking pools influencing Ethereum governance. This marks the third rejection in 2025 alone. Layer-2 tokens like Arbitrum $ARB and Optimism (OP) also slumped over 15%. BlackRock responded, calling the decision “unprecedented political interference.” ETH is now trading below $2,900. Traders are debating if this opens the door for more decentralized Ethereum alternatives like Cardano $ADA or Polkadot $DOT

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