Ethereum
Political narrative of Ethereum ETF approval seems ‘less credible’: Bernstein
The idea that a policy change led to the SEC’s approval of Ethereum spot ETFs last month was called into question after President Joe Biden vetoed bill to overturn SAB 121.
What happened: According to a study by a brokerage company Bernsteinthis recent veto undermines the notion of a political change influencing the SEC’s decision, The Block reported.
In May, the House and Senate voted to repeal the SEC’s staff accounting bulletin, SAB 121.
This bulletin establishes accounting standards for cryptocurrency custodians, making it difficult for Wall Street banks to hold crypto assets for their clients.
President Biden’s veto of this repeal indicates a continued stance on strict crypto regulation, with Biden stating: “My administration will not support measures that endanger the well-being of consumers and investors.” »
Former president Donald Trump recently expressed strong support for cryptocurrencies, even hosting an event for his Trump “Mugshot” NFTs and promising to support self-custody of cryptocurrencies and oppose central bank digital currencies (CBDCs) .
His actions and statements led some to believe that the approval of Ethereum ETFs indicated a broader policy shift in favor of crypto.
Read also: Donald Trump’s crypto wallet increases by $500,000 after his trial
However, Bernstein analysts, including Gautam Chhugani And Mahika Sapraargue that the SEC’s approval of Ethereum ETFs was more likely a pragmatic decision aimed at avoiding legal conflicts, rather than the result of political influence.
The SEC, facing similar regulatory frameworks for both Bitcoin (CRYPTO: BTC) And Ethereum (CRYPTO: ETH) ETFs were likely looking to avoid another legal battle, especially after Shades of grey won its case against the SEC regarding the conversion of its (OTC:GBTC) Bitcoin Trust to a spot Bitcoin ETF.
This perspective is supported by Nate Geracipresident of The ETF Store, who noted that Biden’s veto reinforces the idea that the approval of Ethereum spot ETFs was not politically motivated.
“The SEC didn’t want to get sued and lose again,” Geraci commentedadding that the arguments for approval were simple.
For more information on the evolving digital asset landscape and regulatory developments, industry leaders will convene at Benzinga. The future of digital assets event on November 19.
Read next: Japanese Crypto Exchange DMM Bitcoin Reports $300 Million BTC Theft
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