Do Possible Ethereum ETF Spot Approvals Indicate a Change in US Crypto Policy?
In a shift from broad market consensus, Bloomberg ETF analysts Eric Balchunas and James Seyffart yesterday dramatically raised their odds of spot Ethereum ETFs being approved in the United States from 25% to 75%. The sudden change came amid signs of a 180-degree turn by the US Securities and Exchange Commission, Balchunas said â with crypto increasingly becoming a political issue.
Repeal of SEC SAB 121
According to some industry experts, last week's Senate vote to repeal the SEC's Staff Accounting Bulletin 121 could be behind the potential rollback, amid an emerging alliance between Wall Street, cryptocurrencies and Washington.
The SEC issued the bulletin in April of last year, making it effectively impossible for Wall Street banks to custody crypto assets on behalf of clients, Bitwise CIO Matt Hougan wrote on Monday, specifically stating that if a bank offered cryptocurrency custody services, you would have to. treat those custody cryptoassets as a liability on your own balance sheet.
A rare bipartisan consensus emerged and the Senate voted 60-38 on a resolution to repeal the bulletin, despite warnings from President Joe Biden that he might veto the vote.
âThe record-breaking launch of Bitcoin spot ETFs woke up Wall Street to the reality that there is a lot of money to be made by custodying crypto assets,â he said. "The Wall Street lobby was so strong - or, if you prefer, the logic of repealing the bill was so clear (I'll let you make your own interpretation) - that Democrats felt good opposing their president."
