Bitrabo Editorial
Speculation is rife that the Biden administration is gearing up for a strategic change in approach towards crypto regulations, potentially moving closer to the digital asset community as the November election approaches. Recent indicators point to a possible green light for a spot Ether ETF, signifying a significant shift in stance by the Securities and Exchange Commission (SEC).
According to Bloomberg analysts, the chances of a spot Ether ETF approval have surged from 25% to 75%, with sources close to the SEC pointing to a sudden shift in sentiment within the commission. This unexpected development could be part of a broader political realignment by the Biden administration in response to former President Trump’s backing of Bitcoin and cryptocurrencies.
The potential approval of the spot Ether ETF has caused waves in the financial and crypto markets, triggering substantial price hikes in Ethereum and other altcoins. The approval process necessitates the SEC’s clearance for both the 19b-4s involving exchange rule changes and the S-1s, the registration statements crucial for ETF launches. This move signifies an initial tangible indication of the Biden administration pivoting towards a more crypto-friendly policy direction.
Pundits Contemplate a Complete Policy Reversal
Facing these developments, multiple experts have stepped forward to discuss the potential for a comprehensive change in stance by the Biden administration. Haseeb Qureshi, Managing Partner at Dragonfly, predicts a softening of Biden’s stance on crypto in the lead-up to the election to avoid losing votes over a relatively minor issue. This shift is seen as a strategic move focused on reducing political risks rather than advocating for digital currencies.
Sam Lyman, Director of Public Policy at Riot Platforms, highlights several crypto-friendly shifts, including Trump’s overt support for digital assets, the SEC’s policy reversal on the Ether ETF, and notable legislative advancements. He underscores recent wins for the crypto sector such as the repeal of SAB 121 and the resignation of the FDIC Chair, viewed as responses to political influences from pro-crypto factions.
Notable figures in the crypto space like Jake Chervinsky and Vijay Boyapati concur with the belief that the political landscape is driving these changes. Chervinsky, Chief Legal Officer at Variant Fund, emphasizes that an approved spot ETH ETF could indicate a significant shift in US crypto policy post the SAB 121 vote, potentially outweighing the ETF approval’s direct market impact.
Both Boyapati and Adam Cochran echo Chervinsky’s sentiments, suggesting that the Democrats are adjusting their stance to safeguard potential electoral losses by showing a friendlier disposition towards crypto. Cochran, partner at CEHV, emphasizes the Democratic Party’s realization that embracing pro-crypto policies could resonate with a broader voter base.
As of the latest update, ETH is priced at $3,659, exhibiting an 18% rise in the last 24 hours.