A Good Week for Crypto Investors

It’s been a really good week for cryptocurrency investors.

Two important milestones: US House of Representatives Passes Better Cryptocurrency Act and Approves Ethereum ETF.

Here’s why we celebrate:

Most of the history of cryptocurrency has been in a gray area of ​​regulation. Not like that illegal — But the U.S. SEC doesn’t feel so good because it can sue any project at any time. legal.

Cryptocurrency is new. The law is old. This confuses both regulators and investors.

For years we have been calling for “regulatory clarity” – better laws and better explanations of what is legal and what is illegal.

We all want to follow the law. And if we can clarify the law, there will likely be a flood of new people and businesses investing in cryptocurrencies. This investment will help us build more useful cryptocurrency products, services, and companies.

Simply put, most people don’t want to build a company that could be sued by the SEC at any time. As the law becomes clearer, more people will set up more cryptocurrency companies, which will benefit the world.

This week we took two major steps forward in our pursuit of regulatory clarity. This is why it’s important.

Milestone #1: Birth of FIT21

A new bill, the Financial Innovation and Technology for the 21st Century Act (FIT21), has passed the U.S. House of Representatives with overwhelming bipartisan support. The results are as follows:

• Clearer Regulations: No more confusion about which agency (SEC or CFTC) regulates which cryptocurrency. FIT21 provides a compliance roadmap for cryptocurrency companies by defining how decentralization impacts regulation.
• Innovation and Consumer Protection: This bill helps innovation by establishing a clear path for establishing new cryptocurrency companies. At the same time, it protects consumers through measures such as segregated customer funds and disclosure requirements.
• American kindness: Cryptocurrency innovation is moving overseas without clear rules. FIT21 will create a favorable environment for cryptocurrency companies to succeed in the United States, potentially leading to the next big tech company.

The bill is not perfect. And it still has to go to the Senate, which will likely break it up and send it back to the House for another vote. According to industry experts, this may be scrapped and a new bill drafted in its place. This could be much better.

If the Senate and House agree, the bill is sent to the President. Biden has said he opposes the bill, but he has indicated he will not veto it, seeing that bipartisan support for FIT21 is strong.

TLDR: A bill becomes law if it passes the House, Senate, and the President. One went down, two remained.

Getting to the capital is a long, long journey. I had to wait a long time while sitting on the committee. But we have passed an important milestone.

Milestone #2: Ethereum ETF approved

You may recall that earlier this year, the SEC approved a Bitcoin spot ETF, allowing individual investors to purchase Bitcoin through a brokerage account rather than opening an account on a cryptocurrency exchange or setting up a confusing digital wallet. .

This Bitcoin ETF has become very popular. It is one of the most actively traded ETFs in the United States today. Investors have poured billions of dollars into these ETFs, which has sent the price of Bitcoin soaring to 2024 highs.

Ethereum ETF is now being launched.

The SEC gave its approval for this. 8 new ETFs This allows you to invest in Ethereum through a traditional brokerage account. Here’s what this means:

• Easier Access to Ethereum: There is no need to deal directly with cryptocurrency exchanges or wallets. You can buy and sell these ETFs like any other stock on a brokerage platform.
• Strengthening investor protection: ETFs are regulated by the SEC, which provides greater security and transparency than unregulated cryptocurrency exchanges.
• Wider adoption potential: This approval will lead to mainstream interest in Ethereum, which will likely push the price of ETH higher.

ETFs are from well-known issuers such as Grayscale, VanEck, and Fidelity. This is the real deal. It’s not on the market yet, but it’s coming soon.

If you have been faithfully investing in the Blockchain Believers Portfolio or the Future Winners Portfolio, congratulations! Both hold BTC and ETH as two core investments, and these investments are now becoming mainstream.

also: Coinbase will act as custodian for most ETFs while holding actual Ethereum. This is also good news for $COIN investors. Because Coinbase is a fundamental pillar of the integration of cryptocurrencies and traditional finance.

Two Big Cryptocurrency Milestones

Ralph Waldo Emerson said, “Life is not a matter of milestones but of moments.”

But screw Emerson. Milestones feel pretty good.

This week saw two important milestones for cryptocurrency investors. To all of you who have joined me on that journey, congratulations on keeping the faith. And for everyone else: It’s never too late to start.