While claims that the SEC has started to change direction on Ether spot ETFs have brought a rise in cryptocurrencies, industry executives have not remained indifferent to the developments.

Jake Chervinsky, head of legal affairs at Variant Fund, a company that invests in early-stage cryptocurrency projects, evaluated the Ether spot ETF developments.

“Washington is not waiting either”

Tweeting about the change of direction at the SEC, Chervinsky noted that the approval of the ETF requests would also come as a shock to many in Washington:

“If a spot ETH ETF really gets approved, everyone I know who understands the regulatory situation in Washington would be greatly surprised. However, this does not mean it won’t happen.”

“SAB 121 is more important than the Ether ETF…”

Referring to the passage of a law in the House of Representatives last week that aims to cancel SAB 121, the lawman said:

“This could imply that after the SAB 121 vote ends, there has been a significant shift in U.S. cryptocurrency regulation policy – something perhaps even more important than the ETF itself.”

White House opposes it

The regulation, known as SAB121, was first published by the SEC in March 2022. The regulation requires banks and other financial institutions to include the cryptocurrencies they hold on behalf of their customers on their balance sheets. However, this is opposed by financial institutions. Risk management, cost increases and the huge responsibilities taken here scare banks and other financial institutions.

The White House and the Biden administration want to see the SEC as the institution responsible for cryptocurrencies and therefore stand behind the regulation.

In a statement from the White House, “SAB 121 has emerged due to the huge losses experienced by customers. If this regulation is canceled, efforts to protect investors will be hampered. If that happens, significant financial instability and market uncertainty will result.”