- The Biden administration in the US may be adopting a more lenient policy towards cryptocurrencies.
- Variant Fund CLO Jake Chervinsky stated, “If Ethereum ETFs are approved, it would shock everyone I know close to the process in the capital.”
- According to Bloomberg analysts, the SEC’s shift in approach towards Ethereum ETFs has increased their approval likelihood from 25% to 75%.
This article explores the evolving landscape of cryptocurrency regulation in the US, highlighting recent developments that signal a potential shift in governmental approach.
Changing Tides in US Crypto Policy
Recent actions by the US Senate and statements from financial experts suggest a significant shift in the US government’s stance on cryptocurrency regulations, particularly concerning Ethereum ETFs. This change could have far-reaching implications for the crypto market in the US.
Senate’s Rejection of SAB 121
Last week, the US Senate voted to reject the SAB 121 notice, which would have made it difficult for financial institutions to provide custodial services for cryptocurrencies. This decision, pending a potential veto from President Joe Biden, marks a pivotal moment in US crypto policy.
Implications of Potential Ethereum ETF Approval
The approval of Ethereum ETFs would not only be a landmark event for cryptocurrency investment in the US but could also indicate a broader acceptance of crypto assets in mainstream finance. Jake Chervinsky emphasized that this approval could signify a more substantial shift in US crypto policy post-SAB 121 vote, potentially even more critical than the ETF approval itself.
Political Considerations Ahead of Presidential Elections
Haseeb Qureshi of Dragonfly Partners believes that President Biden is softening his stance on crypto policy ahead of this year’s presidential elections. He suggests that the administration is cautious about losing votes over what it considers a minor issue, indicating that ETF approvals might be the first signal of this softening stance.
Conclusion
The evolving regulatory landscape for cryptocurrencies in the US suggests a potential shift towards a more accommodating approach. With the Senate’s recent actions and the anticipated approval of Ethereum ETFs, stakeholders in the crypto market may soon witness significant changes in how crypto assets are treated by regulators and politicians alike.
