The post How the US Election Could Reshape Crypto Regulations: Trump vs. Harris Showdown appeared first on Coinpedia Fintech News
The United States is about to witness a crucial presidential election this November. This time, the contest is so close that it is hard to predict whether Republican candidate Donald Trump or Democratic candidate Kamala Harris will emerge victorious. Interestingly, a recent report indicates that a section of the cryptocurrency community wants to see the victory of Donald Trump. Why? The logic is simple! Read on to know more!
The US SEC’s Current Stance on Crypto ETFs
Even though it was under the leadership of Gary Gensler that the US SEC approved the first Bitcoin Spot ETFs and Ethereum Spot ETFs, it was not easy for the companies involved to secure the approval, as they had to overcome several regulatory obstacles. The US SEC has been tough not only on the cryptocurrency ETF sector but also on top crypto exchanges like Binance and Coinbase, which have entered into legal battles with the regulator to secure their rights. Do we need any more evidence to assume that the present US SEC administration has given a tough time to the entire cryptocurrency industry, especially the crypto spot ETF sector?
Trump’s Potential Impact on Crypto Regulations
Many analysts think that the victory of Donald Trump in the US presidential election is the simplest solution to the present crisis in the cryptocurrency world. Notably, among those who consider Trump as the solution is Eric Balchunas, an acclaimed crypto analyst. Like most analysts, Balchunas also believes that once Trump wins the 2024 election, he will replace Gensler with someone more supportive of the cryptocurrency industry.
Clearly, not many expect a major reversal in the attitude of the US SEC towards certain sensitive crypto-related matters, such as the approval of new crypto spot ETFs. What prompts some analysts to take a strong stand against the victory of Kamala Harris is the fear that Gensler may continue as the SEC chain under her administration.
You’ve heard of the Fed Put. This is like the Trump Call.. filings for XRP or Solana or any other alt coins are basically like a cheap call option on a Trump win as Genz will be gone and anything’s poss. Harris wins no way these get approved, and the “call” expires worthless. https://t.co/mkpCbqEuQ4
— Eric Balchunas (@EricBalchunas) October 1, 2024
XRP and Solana ETFs: What’s Next?
There have been reports that Bitwise is preparing to launch an XRP ETF soon. The recent registration of a trust in Delaware by the company is considered by many as an initial step towards the XRP ETF move.
Earlier, a court ruling classified XRP’s secondary sales as non-securities. The SEC has not yet appealed against the ruling. But as the regulator has until October 7, 2024, to file a challenge, at this moment we cannot say for certain that the regulator will not appeal.
Experts are closely watching the development. Many believe that if the SEC chooses to appeal the court ruling, the chances for an XRP ETF approval under the current SEC administration are slim.
The case of Solana is not different. The SEC has yet to give a green signal to Solana ETFs.
What triggers strong sentiment among crypto enthusiasts against the SEC’s attitude towards the crypto ETF segment is the fact that not many global jurisdictions have such a tougher regulatory stand. Recently, Brazil approved two spot Solana ETFs, showcasing how open their regulators are to welcoming new financial innovations.
In conclusion, there is little doubt that the US election result will be a key factor in determining the course of the crypto sector, especially its crypto ETF segment.
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