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Wall Street Sets Sights on Donald Trump’s Crypto Policies Amid Memecoin Frenzy

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12 hours ago

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As Donald Trump, who claims to be the “crypto president,” begins his second term, the industry anticipates revolutionary changes in the US crypto ecosystem. Wall Street giants expect Trump’s crypto policies will facilitate easy crypto investments, benefitting behemoths like JPMorgan Chase & Co. and BlackRock Inc. However, financial firms fear the President’s TRUMP memecoin could have unintended consequences for his potential crypto policies.

While the TRUMP memecoin is grabbing headlines, Wall Street companies are shifting their focus to Donald Trump’s crypto policies. Leaders who once doubted the crypto industry, viewing it as plagued by scams and fraud, are now exploring opportunities in the space.

Wall Street Giants Exploring Crypto Opportunities

According to a Bloomberg report, Wall Street executives discussed potential opportunities in the crypto sector at the World Economic Forum 2025 in Davos, Switzerland. Jenny Johnson, the CEO of Franklin Templeton Investments, stated, “I think that the thing with the Trump administration is we’re going to start to see them converge more the Tradfi and the crypto, which is something that we need.”

However, Wall Street firms highlighted the significance of regulatory clarity, especially for the custody of crypto assets. State Street Corp CEO Ron O’Hanley stated that the potential changes in the accounting rules could make it easier for banks to hold cryptocurrencies.

This discussion comes following the increasing urge for crypto regulations amid the recent memecoin frenzy. Experts like John Deaton and Bill Morgan emphasized that urgent regulatory reforms are necessary, particularly in the uncharted territory of memecoins.

Financial Leaders Highlight Memecoin Controversy

At the meeting, financial companies posited that the recent memecoin spree has significantly impacted Trump’s crypto policies. This statement is particularly noteworthy given Trump’s silence on crypto matters on his initial day.

Notably, TD Cowen analyst Jaret Seiberg stated that the TRUMP memecoin’s wild ride could hinder efforts to pass digital-asset legislation through Congress. Seiberg added that the controversy surrounding the token could strengthen Democratic opposition, making it more challenging for lawmakers to reach a bipartisan agreement on the crypto market structure bill. The companies see it as as one of the major hindrances to their easy exploration of the crypto space.

Further, Seiberg narrated the potential implications of the memecoin’s price surge, stating,

Democrats are going to demand details on who bought the coins and what is responsible for the increase in price. They will be searching for indications that foreign governments, foreign businesses and domestic companies are using the coin to influence Trump’s decision-making.

TRUMP Token’s Market Volatility in Focus

Donald Trump’s TRUMP token created ripples in the crypto market with its sudden rise and subsequent fall. Within three hours of launch, the token reached $8 billion, boosting investor confidence.

After reaching a high of $73, the token dipped to a low of $31. However, over the past 24 hours, TRUMP has gained a notable 5.7%, currently trading at $44.28.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Litecoin ETF Likely Next Spot Crypto ETF to Get SEC Nod; Bloomberg Analyst

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1 hour ago

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January 22, 2025

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A Litecoin ETF may be the next cryptocurrency ETF to be approved in the United States given the current circumstances. Bloomberg Senior ETF Analyst Eric Balchunas made this prediction after Canary Capital filed an amended S-1 registration form in relation to its Litecoin ETF proposal.

Amended Litecoin ETF S-1 Filing Suggests SEC Engagement

Canary Capital had submitted the S-1 registration form for the Litecoin ETF with the U.S. Securities and Exchange Commission (SEC) in October 2024. On Wednesday, the company filed an amended version of this form. According to the filing, U.S. Bancorp Fund Services would act as the administrator of the ETF, while Coinbase Custody Trust and BitGo would act as the custodians for the Litecoin of the fund.

Some of the industry watchers including the Bloomberg analysts have suggested that that the modification of the filing could be an indication of SEC’s interest. Another Bloomberg ETF analyst, James Seyffart pointed out that the amendment could mean the SEC has offered comments on the application. However, there has been no 19b-4 filing made, which is a formal application for rule change that initiates the approval process.

“We had heard chatter that the Litecoin S-1 had gotten comments back from [the] SEC,” said Balchunas in a post on X (formerly Twitter). He also said that this is in line with his earlier claim that Litecoin is ‘most likely’ to be the next cryptocurrency ETF in the United States.

New SEC Leadership Adds Uncertainty

The timing of the Litecoin ETF’s approval process could depend on upcoming changes in SEC leadership. Gary Gensler, the current SEC chair, is set to step down on Monday. Former SEC commissioner Paul Atkins, who has expressed support for the cryptocurrency sector in the past, has been nominated to lead the agency. 

However, the Senate has yet to confirm Atkins’ appointment, and the exact timeline remains uncertain.

Balchunas emphasized that the leadership transition is a “huge variable” in the approval process for the Litecoin ETF.

Growing Interest in Spot Crypto ETFs

Created in 2011 as a more efficient version of Bitcoin, Litecoin is one of the oldest and most stable blockchains. Following the announcement, the price of Litecoin spiked by more than 18% to trade at $119.46 at the time of writing. 

Analysts believe that the current bullish rally may break through the $130 barrier, with the LTC price prediction standing at $170. In addition, open interest increased by 29.58% to $575.39 million within the last 24 hours while the trading volume jumped significantly by 277.25% to $1.65 billion.

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This excitement comes in the wake of the recent approval of U.S. spot Bitcoin and Ethereum ETFs in recent months. These products outperformed the market, which led to the growth of interest among issuers in the creation of ETFs for altcoins like Solana and XRP.

A recent JPMorgan and Hashkey research note suggested that new Solana and XRP ETFs could pull in $13.6bn of new funds if they are approved within six to 12 months. The introduction of altcoin ETFs such as Litecoin may also contribute to increased institutional investments in the cryptocurrency space.

Next Steps for Litecoin ETF Approval

Even though the amended S-1 filing marks a progress, there is no certainty as to when the approval of the Litecoin ETF will be completed. The submission of a 19b-4 application would formally kick off the SEC’s decision process but Canary Capital has not given any indication of when this would happen.

The original filing of Canary identified Litecoin as a blockchain that has had “100% uptime since its inception” noting its security and stability as strengths. Industry participants are now focused on the next steps, such as the SEC’s response and the possible 19b-4 filing, as the momentum for the approval of the Litecoin ETF picks up.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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South Korea Regulator Suspends Upbit Operations Over KYC Violations

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2 hours ago

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January 22, 2025

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In the latest development in the Upbit scrutiny, South Korea ordered the platform to suspend its business operations. Citing violations of Know-Your-Customer (KYC) rules and anti-money laundering laws, South Korea notified the exchange about the suspension. Upbit’s future services in the country remain in jeopardy as the exchange has received severe-than-expected sanctions.

Upbit To Suspend Business in South Korea

The South Korean Financial Intelligence Unit has warned Upbit crypto exchange over its alleged violations of the Specific Financial Transaction Information Act. Reportedly, this warning could affect Upbit’s future in South Korea, with a possible halt of services for up to six months. As per the notice, the crypto platform would be restricted from new customer-related activities while existing clients could continue their trade.

Notably, a disciplinary hearing is scheduled on January 21 over the exchange’s KYC violations. Upbit could submit its response by January 20. The FIU’s sanctions-level meeting is expected to evaluate Upbit’s regulatory compliance. During Upbit’s virtual asset service provider (VASP) license renewal program, South Korea discovered more than 500,000 cases related to KYC violations. As these cases include account approval without proper identification, they are considered as unauthorized customer verifications.

How Will Upbit’s KYC Violations Impact the Broader Crypto Industry?

The crypto market is keenly observing the developments within the Upbit case. As of now, the regulators haven’t decided the extent of sanctions, including the possible fines. The industry expects explanations from Upbit on January 21, which would lead to further decisions in the case. Usually, the authority could impose up to 100 million won ($68,592) for violations of customer verification regulations.

South Korea has been at the forefront of crypto regulations, driven by its vision of fostering market expansion and customer security. Its recent efforts highlight its commitment to tackling increasing illegal crypto practices in the country. Further developments in the case could significantly impact the global crypto regulatory landscape.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Nasdaq Files 19b-4 for Canary Litecoin ETF Amid Approval Speculation

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3 hours ago

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January 22, 2025

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Nasdaq has submitted a 19b-4 form to the U.S. Securities and Exchange Commission (SEC) for the proposed Canary Litecoin ETF. This filing, made on behalf of Canary Capital, starts the official review process for the approval of a spot Litecoin exchange-traded fund (ETF). 

The submission is a crucial step in the regulatory process and could pave the way for Litecoin to join Bitcoin and Ethereum as the next cryptocurrency with an approved ETF in the United States.

Nasdaq Files 19b-4 for Canary Litecoin ETF

The 19b-4 form was filed by Nasdaq on January 16 while Canary Capital had submitted an amended S-1 filing earlier in the week. These two filings thus address all the essential elements the SEC considers while evaluating the ETF proposal.

As stated in the submission, U.S. Bancorp Fund Services, LLC will perform the function of the fund administrator and U.S. Bank N.A will oversee the cash of the ETF. Coinbase Custody Trust Company LLC will act as the custodian of the Litecoin of the fund.

The 19b-4 filing is the first official step that exchange agencies take to receive the SEC’s stamp of approval on ETFs. This filing thus begins the formal 240-day period within which the SEC can either approve the application, reject it, or ask for more information.

Bloomberg Senior ETF Analyst Eric Balchunas termed the filing as a “positive signal” in a recent post in X, which indicates that Litecoin might be the next cryptocurrency to get the green signal for a spot ETF.

Litecoin Price Rallies as SEC Prepares for Change

The filing occurs at a time when the SEC is in the process of changing leadership under the new government under President-elect Donald Trump. Former SEC Commissioner Paul Atkins who has been an advocate for cryptocurrencies has been recommended for the position following Gensler’s exit. This shift in leadership can be an opportunity for a more positive approach to cryptocurrency ETFs, according to industry experts.

Balchunas noted the change of leadership and said that it is a “huge variable” in the approval of Litecoin and other ETFs. Canary Capital has been in the process of seeking approval of Litecoin ETF since October 2024 and in the process of addressing the regulatory issues in its filings.

When the news broke, the cryptocurrency market gave a positive reaction, especially to Litecoin, which surged more than 15% within 24 hours. On-chain analytics firm Santiment revealed that large investors with holdings of over 10,000 LTC scooped up an additional 250,000 LTC over the last week, thus fuelling market sentiment in favor of Litecoin.

Competition Among Spot Crypto ETFs Intensifies

As Litecoin is moving forward in the ETF race, other cryptocurrencies like Solana and XRP are not far behind in the race. Solana is currently leading in the race, with several companies, including VanEck, Grayscale, and Bitwise, having submitted 19b-4 forms for spot Solana ETFs as early as November 2024.

Grayscale’s Solana ETF is expected to get a preliminary nod from the SEC by January 23, while other Solana ETFs are set to have their filings due later this month.

The applications for Ripple’s XRP ETFs are also pending with WisdomTree, Bitwise, 21Shares, and Canary Capital among others. If approved, Solana and XRP ETFs are expected to lure investments of up to $14 billion in their first year of operation, according to the experts.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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