Bernstein: Spot Ethereum ETFs Approvals by SEC Not Politically Driven

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After the Securities and Exchange Commission (SEC) surprisingly approved spot Ethereum exchange-traded funds last month, there were speculations that this was a result of a shift in political stance.

However, with the recent veto of the bill to overturn SAB 121 by President Joe Biden, this narrative is now less credible according to research and brokerage firm Bernstein. In May, the full House and Senate voted to repeal SAB 121, which sets accounting standards for crypto custodians.

However, this was met with a veto from President Biden, making it difficult for Wall Street banks to custody crypto assets for clients. Former President Donald Trump also showed support for crypto by hosting an event for buyers of his Trump “Mugshot” NFTs and accepting it for campaign donations.

He also made statements against central bank digital currencies and in support of the right to crypto self-custody.