Ethereum Shocked Everyone: Is the Biden Administration Switching Sides?

The Joe Biden administration in the USA may have started to adopt a more moderate policy for cryptocurrencies.

“If Ethereum ETFs are approved, it would shock everyone I know in the capital who is close to the process,” said Variant Fund CLO Jake Chervinsky. said.

The SEC's change of approach towards Ethereum ETFs has increased the chances of their approval from 25% to as high as 75%, according to Bloomberg analysts.

Last week, the US Senate rejected by majority vote the SEC's declaration coded SAB 121, which made it difficult for financial institutions to provide custody services for cryptocurrencies. Joe Biden is expected to veto this.

“[The approval of ETFs] could mean a major shift in U.S. crypto policy after the SAB 121 vote, which is perhaps even more important than the ETF itself,” Chervinsky said.

Haseeb Qureshi, a partner at Dragonfly, thinks Biden has started to soften his cryptocurrency policy ahead of this year's presidential elections.

Haseeb said, “We [Biden] don't want to lose votes in a tight race over an issue that is minor to him. ETFs are the first signal of this – I think we will see other institutions start to soften in the coming months,” he said.