United States thaws on crypto as US firms return and Donald Trump courts crypto voters. Meanwhile, the SEC looks set to approve spot Ethereum ETFs – read on to discover more.
There is a wave of change sweeping across the United States.
It might be because of the upcoming hot-charged election with former President Donald Trump’s pro-crypto stance and Democrats scrambling to align with the unstable crypto wave.
Seems like ChokePoint 2.0 is also ineffective and even crashed.
First, the Senate made its position known. As administrative changes become more pronounced, the world’s superpower appears to be more welcoming to successful crypto firms founded by Americans. If Trump wins back his seat, we could see even more firms returning to the States.
United States SEC Makes 180-Turn On Spot Ethereum ETFs
Political pressure (possibly arm-twisting) on the otherwise strict Securities and Exchange Commission (SEC) to thaw on Ethereum and the spot Ethereum ETF could explain this unexpected tone shift.
It may also be because the regulator now agrees with all the petitions from pro-crypto activists and founders.
Weeks after the chair, Gary Gensler, was reported to consider ETH a security, the Commission shifted tone on May 20th and appears to be warming up to the idea of spot ETH ETFs.
Overall, industry insiders braced for rejections. However, the United States SEC surprised crypto skeptics by requesting accelerated changes to spot ETH ETF listing applications.
It was the first time such a request came from the Commission.
Whenever they ask for changes, it typically precedes approval. As such, the obvious excitement and spike in ETH prices were reactions to this position.
The SEC has deadlines to decide on VanEck and ARK Invest/21Shares applications by Thursday this week.
UPDATE: It's happening. We have at least 5 of the potential #Ethereum ETF issuers that have submitted their Amended 19b-4's in the last ~25 min.
Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, & Franklin all submitted via CBOE. pic.twitter.com/pHGt8iRWi8— James Seyffart (@JSeyff) May 21, 2024
The approval process involves two steps – exchange listing and ETF registration.
While exchange listing approval would be a massive win (and highly likely considering the rising odds), the actual launch could take several months due to the pending registration review.
This newfound openness towards crypto coincides with other positive signs.
SAB 121 Vote, Circle, and Galaxy Digital Coming Back Home
The Senate recently passed the SAB 121 bulletin, which allowed the SEC to restrict public companies under its purview from custodying digital assets.
Meanwhile, the House of Representatives passed the Deploying American Blockchains Act of 2023. The act authorizes the Secretary of the Department of Commerce (not the United States SEC) to advise the president on matters of crypto.
At the same time, last week, Circle announced that it was moving its headquarters from Ireland back to the United States. The move, however, remains shrouded in mystery.
While an official explanation is lacking, speculation leans towards a potential initial public offering (IPO), and it is easier to see why.
Though the higher tax burden in the United States might be prohibitive, the possibility of higher valuation once it is listed is the primary driving force.
Besides Circle, Galaxy Digital also submitted its S-4 filing with the United States as a Delaware Corporation. It means they plan to list, and filing their intention makes them compliant with existing securities laws in the country.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
