As President-elect Donald Trump prepares to take office for his second term, significant changes in the regulation of cryptocurrencies are imminent. A wave of crypto ETFs is expected to gain approval in the coming year, signaling a potential revolution in digital assets in the United States.
Newcomers to Crypto ETFs
According to According to Bloomberg ETF expert Eric Balchunas, two Bitcoin and Ethereum ETFs from firms such as Hasdex, Franklin Templeton, and Bitwise Invest may be next in line for approval.
Balchunas also commented recently rejection of the Solana filings, showing that both Solana and XRP ETFs he will need to wait until the new administration of the US Securities and Exchange Commission (SEC) takes control so that their requests will be “considered carefully.”
However, the road to approval may not be straightforward. Balchunas pointed out that the “complex legal issues” surrounding the classification of these tokens, especially regarding their status as “securities,” will have to be resolved.
Conversely, Litecoin, which is considered a fork of Bitcoin, may be classified by the SEC as a commodity, which could improve its chances of approval. Notably, the new issuing company Canary Capital is the only Litecoin filer either HBAR ETF.
While Balchunas believes both have a high chance of approval, he cautioned that it remains to be seen whether there will be sufficient investor demand for these products.
Trump’s Regulatory Shift
This expected growth in crypto ETF approvals coincides with Trump’s broader regulatory shift toward digital assets. On December 4, Trump confirmed Paul Atkins as the potential new chairman of the SEC, a move that reinforces his commitment to promoting a crypto-friendly environment.
This change comes after the resignation of the current chairman of the Securities and Exchange Commission, Gary Gensler, his last day in office coincides with Trump’s inauguration on January 20.
Atkins, who served as SEC Commissioner from 2002 to 2008 under President George W. Bush has a reputation for advocating for less regulatory burden on the financial markets.
Trump has expressed confidence in Atkins, saying on the Truth Social website that he is a “proven leader of common sense regulations.” The president-elect emphasized Atkins’ belief in the power of large markets and the importance of digital assets in driving economic growth.
As the new administration prepares to take over, attention is now turning to the Commodity Futures Trading Commission (CFTC) and who will lead the agency.
Sources told Fox Business he has no income The Trump administration may give the CFTC the power to regulate certain crypto assets, further improving the future of digital currency regulation in the US.
However, all of these developments are considered very positive for the broader cryptocurrency industry. Anticipated regulatory changes and a supportive environment are expected to encourage institutional adoption.
Featured image from DALL-E, chart from TradingView.com
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