- The Biden administration may be preparing for a strategic pivot on crypto regulations, potentially aligning closer with the digital asset community ahead of the upcoming November election.
- This speculation follows recent developments indicating a possible approval of a spot Ether ETF, a significant change in stance by the Securities and Exchange Commission (SEC).
- On Thursday, Bloomberg ETF analysts James Seyffart and Eric Balchunas dramatically increased their forecast for the approval of a spot Ether ETF from 25% to 75%, citing sources close to the SEC.
This article explores the potential shift in the Biden administration’s approach to cryptocurrency regulation, highlighting recent developments and expert opinions on the matter.
Crypto Community Speculates On 180-Degree U-Turn
Following the news, several experts came forward, speculating on a complete turnaround from the Biden administration. Haseeb Qureshi, Managing Partner at Dragonfly, stated via X: “Been saying for weeks that Biden is going to soften on crypto going into the election. He doesn’t want to lose votes in a tight race over what is ultimately a minor issue to him. ETF is the first sign of this—I think we see other agencies also softening in the next few months.”.
Political Realignments and Market Reactions
This sentiment suggests a tactical adjustment rather than a full policy overhaul, aimed at mitigating political risks rather than championing digital currencies. Sam Lyman, Director of Public Policy at Riot Platforms, highlighted a series of crypto-friendly shifts, including Trump’s overt support for digital assets, the SEC’s policy reversal on the Ether ETF, and significant legislative developments.
Implications of ETF Approval and Policy Shifts
Jake Chervinsky, Chief Legal Officer at Variant Fund, commented on the potential implications of the ETF approval beyond its market impact. “If the spot ETH ETF is approved, it will be a true shock to everyone I know in DC who’s close to this process. That doesn’t mean it won’t happen. It means approval could signal a major shift in US crypto policy after the SAB 121 vote, perhaps more important than the ETF itself,” Chervinsky explained.
Conclusion
This series of events marks a potential pivot in U.S. crypto policy, suggesting a broader acceptance and integration of digital assets into the financial system. As the situation develops, the implications for the market and future regulatory decisions will become clearer, offering a new chapter in the evolution of cryptocurrency within U.S. borders.
