The U.S. Securities and Exchange Commission (SEC) indicated Earlier this week, the possibility of approving a spot Ethereum ETF for the first time in months suddenly opened up. stubborn signal Conversely, the reversal didn’t just surprise Crypto Twitter.
It also shocked America’s top cryptocurrency lobbyists, who spend their days tracking minor changes in Washington sentiment toward the industry.
“This is an incredible turning point,” said Kristin Smith, CEO of the Blockchain Association, a prominent cryptocurrency lobbying group. decryption. “It was unexpected.”
How was the pivot passed? And after years of unrelenting hostility toward the cryptocurrency industry, could these developments indicate that the SEC, and the U.S. government more broadly, are changing their attitude toward cryptocurrencies?
“I think we’ve completely pivoted,” Smith said. “This represents a complete shift in our understanding of the political significance of cryptocurrencies.”
A conversation with a cryptocurrency industry lobbyist decryption The SEC’s sudden action stems from a recent shift in political winds in the capital. Most agree that a series of events prompted the change last week, when President Joe Biden issued a strong statement. Threat Reject the pro-cryptocurrency bill.
Legislation to repeal SEC regulations SAB 121—This would prevent U.S. banks from holding cryptocurrencies —later pass in the Senate with surprising support from Biden’s own party. Twelve Democratic lawmakers, including Senate Majority Leader Chuck Schumer, supported the bill.
That level of Democratic support was not expected on Capitol Hill. And the Blockchain Association’s Smith believes this undoubtedly sent a message to the White House.
“It is very important to have so many (Democrats) break away from the Biden administration after he has already threatened a veto,” she said.
To make matters worse, in recent weeks Republicans, including former President Donald Trump, have Cryptocurrency acceptance More clearly than ever – create an impression Among cryptocurrency industry leaders There is only one political party on their side.
Cody Carbone, chief policy officer at the Chamber of Digital Commerce, another cryptocurrency lobbying group, said the recent pressure exerted by Republicans on cryptocurrencies may be a sign Biden is on the topic of current leaders within his own party. We believe this applies in conjunction with the public opposition we are facing. The president will likely make a calculated decision to withdraw from cryptocurrencies, at least for now.
“The administration sees that this is not a hill to die on in a very close election that could be swayed by millions of votes,” Carbone said. decryption.
The evolution of Biden’s thinking could already be seen by the president on Wednesday. issued a statement A vote is scheduled this week on another cryptocurrency-related bill, FIT21, which seeks to create a federal framework for cryptocurrency regulation. Biden opposed passage of the bill but did not threaten a veto, repealing SAB 121 last week.
On Wednesday afternoon, FIT21 easily passed the House in a vote of 279 to 136, with the support of 71 Democrats, including former House Speaker Nancy Pelosi.
Ji Kim, chief legal and policy officer at the lobbying group Crypto Council for Innovation, said last week’s events are evidence that cryptocurrencies are now, albeit suddenly, a topic of consensus within American politics. See it as
“What this all means is that cryptocurrencies are absolutely a bipartisan issue,” he said. “Members of Congress are increasingly realizing that cryptocurrencies are absolutely here to stay.”
For the same reason, the White House is approaching cryptocurrencies to save face, and so is the SEC, cryptocurrency lobbyists say. Especially considering the unexpected popularity of SAB 121 and the fact that its bipartisan repeal case singled out SEC Chairman Gary Gensler’s policies.
rubber stamp Spot Ethereum ETFKristin Smith of the Blockchain Association estimates that allowing Wall Street firms to buy and store ETH on behalf of their customers could prove to be the most visible way for Gensler to ease the burden.
“I think this is a kind of peace offering to show that he is open to this space, and he now realizes that the political winds are against him,” she said.
However, cryptocurrency lobbyists disagree on what this means for the SEC’s long-term cryptocurrency policy.
Smith is optimistic that the change of heart will lead to major changes in how Gensler and the SEC will police cryptocurrencies going forward.
“I don’t think he will have any choice but to step down,” she said of the SEC chairman. “That doesn’t mean he’ll go back and undo everything he started, but he might want to think twice before taking any aggressive action against the cryptocurrency industry.”
But Cody Carbone of the Chamber of Digital Commerce has a less optimistic outlook. He believes that approving a spot Ethereum ETF would be nothing more than a cold, calculated political ploy on Gensler’s part. Will there be a meaningful change in the SEC’s outlook on cryptocurrencies? Far from it.
“I don’t think you’ll see him drop this case or stop fighting,” Carbone said of Gensler. “I don’t think you’ll see any more headlines. “Most of his decisions are driven by PR.”
Editor: Andrew Hayward
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