It has become apparent over the years how the political scene can have a massive impact on how the crypto space is able to operate and how well it can perform. A prime example of this has been with the Securities and Exchange Commission in the United States and its dynamic relationship with the crypto sector.
On the one hand, the SEC approved spot ETFs for two different crypto assets last year. On the other hand, it has gone after some of the biggest companies in the space and many believe that it antagonizes the industry as a whole. Naturally, as the leadership of the SEC is about to change, the market is reacting.
The Timeliness of This Change
Currently, the SEC is headed by Gary Gensler, who has announced that he will be resigning once incoming president Donald Trump takes office. Famously, Trump has promised to fire Gensler while on the campaign trail and the outgoing chair has been a controversial figure in crypto spaces. The new SEC chair will be Paul Atkins, a former SEC commissioner who has said that things will be different under his watch.
A statement from Atkins’ lawyers said, “Under his leadership, the SEC may move away from aggressive tactics that prioritize headline-grabbing penalties over substantive outcomes.” Many took this to mean that there would be less hostility towards the industry and more collaboration.
This comes at an interesting time as crypto has never been more successful or mainstream. Bitcoin finally crossed the coveted $100,000 price point, spot ETFs are finally a reality, and more tokens are entering the market than ever before. As crypto analyst Carlos De Lanuza highlights, a look at fresh Coinbase token releases this month will show that there has never been a better time to be in crypto. It also means that there is no better time for an overhaul of regulation. And as this approaches, the market is certainly reacting.
How Bitcoin is Reacting
Bitcoin had been seeing declines in the last few days though has now rebounded on the inauguration of Donald Trump. While some investors are concerned about this trajectory, others believe that a rebound is imminent thanks to the incoming SEC chairman. The way they see it, market sentiments with significantly improve once a more pro-crypto candidate takes office and this will reflect in the Bitcoin price.
There is also the matter of the Trump administration, which has aggressively courted the crypto sector since last year. From rubbing shoulders with the industry elite to putting out a line of Bitcoin sneakers to hinting a Bitcoin being used as US government reserves, the incoming Trump term could do a lot for the industry.
As such, temporary market setbacks are seen as small bumps in the road compared to the gains to be made in the future. And, apparently, these benefits will extend beyond just Bitcoin.
Will XRP Get an ETF?
When the Bitcoin (and later the Ether) spot ETF was first announced, there was speculation about which token would next get the same treatment. After all, a spot ETF is a sure way to get millions, if not billions, of dollars in investment, as well as higher visibility and credibility. While virtually every major token has been considered, XRP is the latest.
This comes via a recent statement from Monica Long, the President of Ripple, the parent company of XRP.
“I think we will see one very soon. I think that we will see more crypto spot ETFs this year coming out of the US, and I think XRP is likely to be next in line after bitcoin and ether,” Long said.
It would make sense as XRP is one of the top tokens by market cap and is renowned for its use in cross-border transactions. Ironically, Ripple Labs has been one of the crypto companies most antagonized by the SEC. In fact, Ripple is still locked in a legal battle with the SEC, which claims that XRP is a security. If this ETF dream comes true, it could signal an end to the company’s long-running legal battles with regulators.
Conclusion
The SEC is about to witness a major leadership shakeup that will impact not just it but the entire crypto sector. In the best-case scenario, the combative relationship between the commission and the crypto industry will be quelled and further progress can be made in regulation and promoting the sector. If all these happen, we can look forward to a new era of crypto-related growth for all.
It has become apparent over the years how the political scene can have a massive impact on how the crypto space is able to operate and how well it can perform. A prime example of this has been with the Securities and Exchange Commission in the United States and its dynamic relationship with the crypto sector.
On the one hand, the SEC approved spot ETFs for two different crypto assets last year. On the other hand, it has gone after some of the biggest companies in the space and many believe that it antagonizes the industry as a whole. Naturally, as the leadership of the SEC is about to change, the market is reacting.
The Timeliness of This Change
Currently, the SEC is headed by Gary Gensler, who has announced that he will be resigning once incoming president Donald Trump takes office. Famously, Trump has promised to fire Gensler while on the campaign trail and the outgoing chair has been a controversial figure in crypto spaces. The new SEC chair will be Paul Atkins, a former SEC commissioner who has said that things will be different under his watch.
A statement from Atkins’ lawyers said, “Under his leadership, the SEC may move away from aggressive tactics that prioritize headline-grabbing penalties over substantive outcomes.” Many took this to mean that there would be less hostility towards the industry and more collaboration.
This comes at an interesting time as crypto has never been more successful or mainstream. Bitcoin finally crossed the coveted $100,000 price point, spot ETFs are finally a reality, and more tokens are entering the market than ever before. As crypto analyst Carlos De Lanuza highlights, a look at fresh Coinbase token releases this month will show that there has never been a better time to be in crypto. It also means that there is no better time for an overhaul of regulation. And as this approaches, the market is certainly reacting.
How Bitcoin is Reacting
Bitcoin had been seeing declines in the last few days though has now rebounded on the inauguration of Donald Trump. While some investors are concerned about this trajectory, others believe that a rebound is imminent thanks to the incoming SEC chairman. The way they see it, market sentiments with significantly improve once a more pro-crypto candidate takes office and this will reflect in the Bitcoin price.
There is also the matter of the Trump administration, which has aggressively courted the crypto sector since last year. From rubbing shoulders with the industry elite to putting out a line of Bitcoin sneakers to hinting a Bitcoin being used as US government reserves, the incoming Trump term could do a lot for the industry.
As such, temporary market setbacks are seen as small bumps in the road compared to the gains to be made in the future. And, apparently, these benefits will extend beyond just Bitcoin.
Will XRP Get an ETF?
When the Bitcoin (and later the Ether) spot ETF was first announced, there was speculation about which token would next get the same treatment. After all, a spot ETF is a sure way to get millions, if not billions, of dollars in investment, as well as higher visibility and credibility. While virtually every major token has been considered, XRP is the latest.
This comes via a recent statement from Monica Long, the President of Ripple, the parent company of XRP.
“I think we will see one very soon. I think that we will see more crypto spot ETFs this year coming out of the US, and I think XRP is likely to be next in line after bitcoin and ether,” Long said.
It would make sense as XRP is one of the top tokens by market cap and is renowned for its use in cross-border transactions. Ironically, Ripple Labs has been one of the crypto companies most antagonized by the SEC. In fact, Ripple is still locked in a legal battle with the SEC, which claims that XRP is a security. If this ETF dream comes true, it could signal an end to the company’s long-running legal battles with regulators.
Conclusion
The SEC is about to witness a major leadership shakeup that will impact not just it but the entire crypto sector. In the best-case scenario, the combative relationship between the commission and the crypto industry will be quelled and further progress can be made in regulation and promoting the sector. If all these happen, we can look forward to a new era of crypto-related growth for all.
