The New US SEC and Crypto
Hester Peirce, one of the Commissioners at the US Securities and Exchange Commission (SEC), has hinted at the potential pro-crypto changes that may emerge once incoming Chairman Paul Atkins takes office in January. While the commission has not unveiled the exact policy changes to expect, Peirce is optimistic that a likely clearance of some stalling crypto ETF applications will be forthcoming.
The New US SEC and Crypto
Speaking in an interview with Zack Guzman of Coinage media, Peirce hinted at how easy things will be when there is a majority of commissioners at the SEC who want things done. This response came when asked about how feasible she thinks an in-kind spot Bitcoin and Ethereum ETF is possible.
BREAKING: SEC Commissioner Hester Peirce previews new pro-crypto changes coming to the SEC
ETF in-kind redemptions and ability for ETF issuers to begin staking likely done “early on”
Both ETFs now have more than $100B in AUM pic.twitter.com/g3jtbuBeWU
— Coinage (@coinage_media) December 20, 2024
On this and the issue of Ethereum ETF staking, Hester Peirce said these are the issues that she believed the public will raise earlier on under the incoming chairman. At the time, spot Bitcoin and Ethereum were still under consideration, issuers had to make a compromise on in-kind and cash creates.
While the Gary Gensler-led commission demanded a cash create settlement method, issuers preferred in-kind. With in-kind, investors can receive settlement in the underlying currency, giving the user a better value overall. The cash creates do the opposite with payouts made in the US Dollar.
The same applies to staking, a product that will offer additional yield for spot Ethereum ETF investors. The markets regulator has opposed these flexible propositions, riding on the volatility-induced high risk in all. Amid the wait for a likely approval, Bitwise acquired Attestant, a staking service to extend the offering to in-house clients.
More than the Markets Regulator
Meanwhile, the changes expected in the crypto industry go beyond just the US SEC. At the moment, there is a lot of noise around Operation Chokepoint 2.0. This operation, as alleged, subtly mandates the banks to restrict banking services to crypto and Web3-based companies.
This operation has led to the collapse of firms like Silvergate Bank. Also, it has held outfits like Custodia Bank from operating at maximum capacity.
Conclusion
Notably, industry leaders are calling for a probe into this operation with Crypto Czar David Sacks saying earlier that it is worth looking into. While the US SEC fights to clean its house, Federal policies that are not favoring the crypto market may also need to change.
FAQs
Q: What changes can we expect from the new US SEC?
A: The new US SEC may bring in more pro-crypto changes, including clearance of stalling crypto ETF applications.
Q: What is the current situation with Operation Chokepoint 2.0?
A: The operation, as alleged, restricts banking services to crypto and Web3-based companies, leading to the collapse of some firms and reduced capacity for others.
Q: How can we expect the crypto industry to change in the future?
A: The industry is expected to evolve, with changes beyond just the US SEC, including Federal policies and the emergence of new technologies.
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.
