Political Influence on Ethereum ETF Approval Debated After Biden Veto

The recent veto of a bill aimed at repealing SAB 121, a regulation hindering banks from holding crypto assets for clients, has cast doubt on the narrative that political shifts led to the SEC's approval of spot Ethereum ETFs last month. Bernstein analysts argue that the approval was more likely a pragmatic move to avoid legal battles, as the SEC had approved similar ETFs for Bitcoin. This view is supported by industry experts who emphasize that the SEC did not want to risk losing another legal case. Despite former President Trump's pro-crypto stance, the veto suggests that strict crypto regulation remains the current stance of the administration.