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SEC Leaning Toward Approving ETFs Amid Ethereum-Based Memecoin Rally
- Given recent predictions and potential imminent approval, the SEC may be reevaluating its tough stance on crypto.
- Political pressure and election concerns, highlighted by Trump’s crypto commitment, suggest the White House may be softening its approach to crypto.
- Memecoins have surged in response to speculation about an Ethereum ETF, despite ongoing regulatory uncertainties.
With Standard Chartered coming out in support for a Spot Ethereum ETF and several sources saying an approval is imminent, it appears the US Securities and Exchange Commission (SEC) is seriously considering its stance.
Related: Here Is The Historic Price on Bitcoin Pizza Day, What Will Be the 2024 Price?
The SEC has been rather hostile toward the industry, in what is often called a crusade against innovation. But perhaps the recent endorsement by Donald Trump has meant that Washington is considering its views on crypto – or at least considering its relevance in the upcoming presidential election as many young voters hold crypto.
Galaxy Digital CEO Mike Novogratz opined on this when he said the tides in the White House are turning, adding that Democrats had come to the realisation that opposing crypto could have serious ramifications on election day.
Novogratz’ advice to Democrats has long been not to make crypto – which he rightfully calls a technology – into a political issue.
Likely someone in Joe Biden’s team – if not the president himself – might have picked up the phone and called Gary Gensler and asked him to go a little easier on crypto.
This comes as Donald Trump, the only man in the way of a Biden re-election, has just declared that he has assembled a crypto army to … go to war (?) with Biden’s anti-crypto Czar Elizabeth Warren.
Memecoins React to Ether Speculations
Politicians aside, several memecoins have strongly reacted to the Ether news, especially those built on the platform.
PEPE (+28%), LADYS (+26%) and FLOKI (12%) have been among the biggest gainers, but long-established memecoins DOGE and SHIB also gained, 4% and 3% respectively.
The run of memecoins comes despite clear evidence whether the SEC is actually willing to approve Ether ETFs. There are also still questions around the status of ETH as a security or commodity. Further, it is now expected that staking ETH will be excluded from any potential fund.
Related: Standard Chartered Predicts Ethereum Could Reach $8,000 by Year’s End
This comes as five applicants have submitted their amended 19b-4 forms – according to Bloomberg’s James Seyffart prove enough that the rumours we heard over the past few days are true.
Nevertheless, we will still have to wait for approval of these filings and subsequently for the SEC’s approval of S-1 filings, which are likely still several weeks away.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
