According to Bloomberg, cryptocurrencies surged due to the possibility that SEC Chairman Gary Gensler will resign following Donald Trump's recent victory in the presidential election.
The cryptocurrency market is surging amid speculation that SEC Chairman Gary Gensler may lose his position.
SEC Chairman Gary Gensler is known for his uncompromising approach to digital asset regulation. He has been at the forefront of the SEC's tough crackdown on the industry, putting pressure on some of the most important cryptocurrency companies such as Coinbase and Ethereum development company ConsenSys. Trump's promises include removing Gensler on the first day of his presidency at a recent Bitcoin conference in Nashville.
Ethereum has lagged behind Bitcoin and has greatly benefited from the election results, with prices rising over 20% as investors bet on a more lenient regulatory approach under the new SEC leadership. For too long, it has been overshadowed by Bitcoin. Ultimately, the optimism that regulators may begin to shift their regulatory focus seems to be reflected in its performance.
Investors are eyeing new opportunities for Ether ETFs under the new leadership of the SEC.
Dan Gallagher, a Republican who served as an SEC commissioner from 2011 to 2015 and is now the chief legal and compliance officer at Robinhood, is one of the candidates being considered for the SEC chairman position.
The anticipated regulatory changes are similarly affecting ETFs targeting Ether. These funds, which have lagged behind Bitcoin ETFs, are largely seen as unfinished products due to the lack of staking opportunities—a feature that allows investors to earn passive income. Currently, about $6 billion is invested in non-staking Ether ETFs, presenting a significant economic opportunity lost for investors in this asset.
