The U.S. Securities and Exchange Commission (SEC) shown Earlier this week, we announced that after months of consideration, the possibility of spot approval for an Ethereum ETF suddenly opened up. Stubborn signal On the contrary, this change of policy didn't just surprise crypto Twitter users.
It also shocked the country's top crypto lobbyists, who spend their days tracking the slightest shifts in Washington's mood toward the industry.
“This is a remarkable shift,” said Kristin Smith, CEO of the Blockchain Association, a prominent crypto lobby group. Decryption“That's something I didn't foresee.”
How did the pivot come about? And after years of unrelenting hostility toward the crypto industry, does this signal that the SEC, and the broader U.S. government, is changing its view on cryptocurrencies?
“I think we’ve completely turned the corner,” Smith said. “This marks a complete shift in our understanding of the political significance of cryptocurrencies.”
Cryptocurrency industry lobbyist Decryption The SEC's sudden stance is believed to be due to the recent change in political winds in the capital. Most agree that the chain of events prompting this change began last week with a strong statement from President Joe Biden. threat Veto the bill promoting virtual currencies.
The bill aims to repeal the SEC rule, sub 121— which would prevent American banks from holding cryptocurrencies — later passed it In the Senate, Biden received surprising support from within his own party, with 12 Democrats backing the bill, including Senate Majority Leader Chuck Schumer.
This level of Democratic support was not expected on Capitol Hill. And he definitely sent a message to the White House, believes the Blockchain Association's Smith.
“I can’t believe there are so many. [Democrats] “It's important to leave the Biden administration when the Biden administration has already threatened a veto,” she said.
Making matters worse, in recent weeks, Republicans, including former President Donald Trump, have Cryptocurrency adoption Make an impression more clearly than ever before Among the leaders of the cryptocurrency industry That there is only one political party on their side.
Cody Carbone, chief policy officer at the Chamber of Digital Commerce, another crypto lobbying group, believes the recent pressure Republicans have applied to crypto comes in tandem with Biden now facing open opposition from leaders within his own party on the issue, forcing the president to make a calculated decision to back off crypto, at least for now.
“The administration sees this as a very close election decided by millions of votes and that this is not an issue that needs to be defended,” Carbone said. Decryption.
The evolution of Biden's thinking was already on display when the president spoke on Wednesday. A statement was issued Another crypto-related bill coming up for a vote this week is FIT21, which seeks to create a federal framework for regulating cryptocurrencies. Biden opposed passing the bill but, crucially, did not threaten to veto it as he did when he repealed SAB121 last week.
On Wednesday afternoon, FIT21 easily passed the House on a 279-136 vote with support from 71 Democrats, including former House Speaker Nancy Pelosi.
Ji Kim, chief legal and policy officer at the lobbying group Crypto Council for Innovation, sees the events of the past week as evidence that cryptocurrencies have now, albeit suddenly, become a consensus topic within U.S. politics.
“What this means is that crypto is truly a bipartisan issue, and lawmakers are becoming more aware that crypto is absolutely here to stay,” he said.
For the same reasons the White House dabbles in crypto to save face, the SEC dabbles in crypto to save face, crypto lobbyists say, especially given that the unexpectedly popular bipartisan repeal of SAB 121 specifically targeted the policies of SEC Chairman Gary Gensler.
rubber stamp Spot Ethereum ETFChristine Smith of the Blockchain Association predicted that the plan, which would allow Wall Street firms to buy and store Ether on behalf of their clients, may be the most visible way Gensler is cornered.
“I think this is a kind of conciliatory offer for him to show that he's open to this area. And now he realizes that the political winds are against him. ” she said.
However, crypto lobbyists differ on what this move means for the SEC's long-term crypto policy going forward.
Smith is optimistic that this change of heart will mark a major shift in how Gensler and the SEC police cryptocurrencies going forward.
“I don't think he has any choice but to resign,” he said of the SEC chairman. “That doesn't mean he will go back in time and undo everything he started, but he will need to think twice before taking any aggressive action against the crypto industry. ”
But Cody Carbone of the Digital Chamber of Commerce has a less optimistic outlook. He speculates that the spot approval of the Ethereum ETF is nothing more than a cold and calculating political maneuver on Gensler's part. Will there be a meaningful change in the SEC's outlook on cryptocurrencies? Far from it.
“I don't think he's going to drop these cases or stop fighting them,” Carbone said of Gensler. “You're not going to see the headlines anymore. Most of his decisions are PR driven.”
Editor: Andrew Hayward
