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Donald Trump Win Key For XRP & Solana ETFs, Bloomberg Analyst

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1 month ago

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Bloomberg analyst Eric Balchunas has hinted that a potential Donald Trump victory in the upcoming U.S. presidential election could influence the fate of XRP and Solana ETFs. 

This comment follows Bitwise’s recent steps toward creating an XRP ETF by registering a trust entity in Delaware. Concurrently, it is ahead of the U.S. Securities and Exchange Commission’s (SEC) deadline to appeal Judge Torres’ ruling that secondary sales of XRP on exchanges are not securities.

Donald Trump Win Key For XRP, Solana ETFs

In the recent thread on X (previously Twitter), Bloomberg analyst Eric Balchunas pointed out that under the current regulation, led by the SEC Chairman Gary Gensler, it has become difficult to approve the new cryptocurrency ETFs, such as the one for SOL and XRP. He pointed out that Gary Gensler has taken a strict stance towards the crypto market and this has affected big players such as Binance and Coinbase.

But Balchunas has pointed out that former president Donald Trump’s win could result in Gensler being replaced, paving the way for softer rules that would enable approval of ETFs for such altcoins as Solana and XRP. Balchunas compared the situation to a “Trump Call,” meaning that those who applied for XRP or Solana ETFs are more or less betting on Trump’s win, hoping that his administration would select a new chair of the SEC who might be more willing to approve such funds.

He predicts that if Kamala Harris beats Donald Trump, there will be no changes to the existing regulation and thus any possibilities for these ETFs would be lost and the “call” on these filings would be useless. However, with Kamala Harris recent shift in stance and pledge to maintain the US dominance in Blockchain and AI, some hope may linger for a potential approval of the ETFs. Moreover, Anthony Scaramucci confirmed that the Vice President is developing crypto policies which aligns with recent calls for a crypto roundtable by a group of DeFi leaders.

Bitwise Takes Steps Toward XRP ETF

Bitwise has taken a big step towards listing an XRP ETF by registering a trust entity in Delaware. This comes in the wake of other applications from other big investment firms including BlackRock and Fidelity who had earlier submitted applications for Bitcoin and Ether ETFs.

Despite the recent developments, the likelihood of being approved remains uncertain. Moreover, the SEC has until October 7, 2024, to appeal Judge Torres’ July ruling, which determined that secondary sales of XRP on exchanges were not classified as securities. Despite this, many experts, including former SEC officials, expect the agency to appeal the decision, further delaying any progress on an XRP ETF hence downplaying the Donald Trump effect.

Should the SEC opt to appeal, most analysts, including Alex Thorn, of Intangible Coins, believe that the chances of the XRP ETF getting approval would be slim to zero.

Solana ETF Faces Similar Challenges

The Solana ETF, like the XRP ETF, faces a tough path ahead under the current SEC administration. Despite the demand for such investment vehicles, the SEC has been reluctant to approve additional cryptocurrency-based ETFs, even after approving spot Bitcoin and Ethereum ETFs. The president of The ETF Store, Nate Geraci, has stated that under the current administration, the chances of a Solana ETF being approved within the next year or two remain slim.

In Brazil, however, two spot Solana ETFs have already been approved, further highlighting the disparity in regulatory approaches between different jurisdictions. 

Similarly, Geraci also pointed out that the political environment could be the key to the approval of these ETFs, especially the result of the 2024 U.S. presidential election. If the former president Donald Trump becomes the president, it may lead to the change in the leadership of the SEC, which in its turn, may lead to more tolerant crypto regulations. On the other hand, Geraci says that if Kamala Harris were to win the presidency, there is no change in the current situation, and the approval of Solana and XRP ETFs would remain highly unlikely.

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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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Chris Giancarlo Dispels US SEC Chair Candidacy Rumor

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19 hours ago

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November 14, 2024

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Amid the ongoing race to replace Gary Gensler as the Chairman of the US Securities and Exchange Commission (SEC), Chris Giancarlo has dispelled rumors that he’s under consideration for the job. Known as “Crypto Dad,” Chris Giancarlo’s name popped up as one of the high-profile regulators capable of replacing the US SEC chair.

US SEC Chair and the Chris Giancarlo Clarification

Besides the general change in leadership that comes with a new administration, Donald Trump plans to fire Gary Gensler right from his first day in office. With Trump’s victory over Kamala Harris, it becomes evident that Gensler is in his last days in office.

Commenting on the trend and his prospect for the role, Chris Giancarlo said he once cleaned up Gensler’s mess at the Commodity Futures Trading Commission (CFTC) and has no plans to do it again. It is worth noting that before taking up the US SEC Chair position, Gensler served as the CFTC Chairman from May 26, 2009, to January 3, 2014.

Chris Giancarlo took over from him as CFTC Commissioner on June 16, 2014, for a term expiring on April 13, 2019. He bagged President Donald Trump’s nomination for a full-time role on August 3, 2017. Having served in the same capacity as Gensler, the Crypto Dad said the DC rumors are wrong.

Beyond the US SEC tag, Giancarlo has also debunked claims that he’s in line for the US Treasury Secretary role.

Who Will Replace Gary Gensler? 

Many named Chris Giancarlo a good fit for the SEC chairman role because of his advocacy work in the industry. As reported earlier by Coingape, even pro-XRP lawyer turned-politician John Deaton once endorsed Giancarlo for the Chairmanship role.

As Chris Giancarlo dispelled the rumors, John Deaton noted that the callout shows the damage Gensler did to both the SEC and CFTC.

With Crypto Dad ruling himself out, the top picks now include current SEC Commissioners Mark Uyeda, Hester Peirce, and Robinhood CLO Dan Gallagher, who are the leading candidates for the role. While President Trump may choose a completely new name, what the industry places a premium on is someone with a pro-crypto mindset.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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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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Gary Gensler Reaffirms Crypto Regulatory Stance Amid Resignation Calls

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20 hours ago

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November 14, 2024

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Ahead of Donald Trump’s team taking office, US SEC Chair Gary Gensler has reiterated his commitment to regulating the cryptocurrency market, stating that stricter oversight is necessary to protect investors. Speaking at the Practicing Law Institute’s Annual Institute on Securities Regulation in New York, Gensler highlighted the importance of clear “rules of the road” for the industry. 

Gensler has also pointed out that many of these assets are securities and should, as such, be regulated by existing securities laws, which include the disclosure and registration rules.

US SEC Chair Gary Gensler’s Stance on Crypto Regulation

US SEC Chair Gary Gensler has argued that the cryptocurrency market needs regulatory safeguards similar to those in traditional financial markets. He emphasized that while Bitcoin is the only asset that does not fall under the category of securities, other forms of digital assets should be considered securities based on the current legal framework.

Gensler said, “Court after court has agreed with our actions to protect investors,” pointing out that the SEC is empowered to implement these laws in the crypto sector.

Gensler pointed out that most other digital assets outside of Bitcoin have yet to demonstrate clear utility and could potentially threaten investors. His comments are made just as a last attempt to build regulatory frameworks before the new Trump administration takes office, with candidates like Robinhood CLO Dan Gallagher emerging as the leading candidates to replace Gensler.

Gary Gensler Highlights SEC Accomplishments

In his speech, US SEC Chair Gary Gensler outlined some of the regulatory measures he has implemented since taking office. He mentioned new requirements for enhancing the quality of information companies provide, such as those concerning executive compensation and data breaches. 

Gensler also discussed improvements in market infrastructure, including the accelerated settlement period for stocks and stricter rules for Treasury clearing.

Besides his achievements, Gensler also mentioned that he was proud of his work at the SEC, calling it “a remarkable agency.” He thanked his colleagues and noted that the US SEC will still play a significant part in ensuring that there are proper protections for investors in the United States. Gary Gensler’s comments amid speculations that he could resign this week.

Resignation Calls and Future of the SEC

Since Donald Trump’s re-election, Gary Gensler has come under pressure to resign, including from ex-SEC official John Reed Stark. Stark, an outspoken opponent of Gensler’s regulation of the cryptocurrency industry, said that Gensler should leave the position to make it easier for the new SEC chairman to come in. 

Gary Gensler has, however, not given any signs of quitting his position despite the calls for his resignation. Some have opined that he may resign in the event that Trump appoints a new SEC chairperson with a friendly disposition towards cryptocurrencies. Donald Trump has expressed his desire to create a conducive environment for cryptocurrency, which will lead to changes in the agency’s policies and the firing of Gensler.

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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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Coinbase CEO Slams DOJ For Alleged Political Polymarket Probe

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1 day ago

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November 14, 2024

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Coinbase CEO Brian Armstrong has criticized the Department of Justice (DOJ) for its recent investigation into Polymarket, a cryptocurrency-based prediction market platform. Armstrong expressed frustration on social media, suggesting that the DOJ’s actions are politically motivated and could inadvertently strengthen Polymarket’s influence. 

The ongoing probe, which involved a search of Polymarket CEO Shayne Coplan’s devices, has sparked widespread debate in the cryptocurrency and technology sectors.

Coinbase CEO Brian Armstrong Criticizes DOJ

In a post on X (formely Twitter), the Coinbase CEO Brian Armstrong, has given his two cents on the Polymarket probe. Amid an FBI raid, Polymarket is said to have violated the terms of its earlier settlements with U.S. regulators by permitting U.S.-based users to place bets, the DOJ probe of the platform suggests. 

A 2022 consent order with the Commodity Futures Trading Commission (CFTC) limited Polymarket’s access to US-based traders and the company paid a $1.4 million penalty. But latest findings suggest that US users might still be using the platform hence raising compliance issues.

The probe has picked up pace after a surge in election-related trades on Polymarket particularly those in favour of Donald Trump’s re-election. Critics, however, despite the Coinbase CEO comments, have expressed fears that such big bets can manipulate the general opinion. 

Polymarket has however said it takes steps to ensure that its services are not used by those based in the United States, but the DoJ’s investigation indicates that the company remains concerned about potential violations.

Polymarket Denies Political Motivations, Defends Its Operations

In reaction to the DOJ’s actions, Polymarket has come forward to explain that its platform is a tool that aids people in gaining information about the world, including elections. 

The company called the DOJ’s actions politically motivated and said that the company would fight for “itself and its community.” Polymarket’s CEO Shayne Coplan commented on the matter stating that it was a disappointing “last-ditch effort” by the current administration to go after companies they feel are linked to political opponents.

He highlighted that Polymarket does not take sides, saying that regulators should instead concentrate on creating a favorable climate for business and startups.

“Polymarket has helped hundreds of millions of people during this election cycle and has not hurt anyone,” Coplan said in a tweet.

The management of Polymarket also emphasized the openness of the platform and the unwillingingness to violate current legislation. Since the CFTC settlement, the company has put in place further measures to check the location of users and to limit the access of suspected US participants.

French Regulators Also Scrutinize Operations

However, there are more regulatory concerns for Polymarket than just the US ones. In France, the country’s gambling regulator, the ANJ, is reportedly mulling over the possibilities of banning Polymarket due to unlicensed gambling services. The French authorities have taken notice of the company after recording a surge in the number of bets placed during the US presidential election.

In particular, the response of Coinbase CEO, to the DOJ investigation has been popular among the cryptocurrency community who consider the probe as a threat to free speech. 

Solana co-founder Anatoly Yakovenko also came out in support of Polymarket, saying that data markets are a form of “political speech” covered by the First Amendment. This view is supported by a number of crypto industry executives who claim that banning platforms like Polymarket hampers people’s ability to discuss political events.

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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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