As President-elect Donald Trump prepares to take office for his second term, the regulatory landscape for cryptocurrencies is undergoing significant changes. A wave of crypto ETFs is expected to be approved in the coming year, signaling a potentially transformative shift for digital assets in the United States.
Emerging Entrants in Crypto ETFs
according to For Bloomberg ETF expert Eric Balchunas, firms such as Hasdex, Franklin Templeton, and Bitwise Invest are likely to be the next candidates for dual bitcoin and ethereum ETF approval.
Balchunes also recently noted rejection of the Solana filings, indicating that Solana and XRP ETFs Their applications will have to wait until the new administration takes control at the US Securities and Exchange Commission (SEC) to be “seriously considered.”
However, the path to approval may not be straightforward. Balchunas pointed out that “complex legal issues” surrounding the classification of these tokens will need to be resolved, particularly regarding their status as “securities.”
In contrast, Litecoin, seen as a fork of Bitcoin, could be classified as a commodity by the SEC, which could increase its chances of approval. Specifically, new issuer Canary Capital is the sole filer for Litecoin or HBAR ETF.
While Balchunas believes both have relatively high chances of approval, he cautioned that it is unclear whether there will be sufficient investor demand for these products.
Trump’s regulatory shift
This anticipated increase 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 SEC chair, a move that reinforces his commitment to promoting a crypto-friendly environment.
This change has come in view of resignation Current Securities and Exchange Commission Chairman Gary Gensler, whose last day in office coincides with Trump’s inauguration on Jan. 20.
Atkins, who served as SEC commissioner from 2002 to 2008 under President George W. Bush, is known for advocating for a reduced regulatory burden on financial markets.
Trump expressed confidence in Atkins, saying in a Truth Social post that he is a “proven leader for common sense principles.” The president-elect emphasized confidence in Atkins’ abilities Capital markets and the importance of digital assets in driving economic growth.
As the new administration prepares to take office, attention is now turning to the Commodity Futures Trading Commission (CFTC) and who will lead the agency.
Sources have indicated to Fox Business that the upcoming Trump administration May empower the CFTC to regulate certain crypto assets, further shaping the future of digital currency regulation in the US.
Nevertheless, all of these developments are considered to be significantly positive for the broader cryptocurrency industry. Greater institutional adoption is expected from anticipated regulatory changes and a more supportive environment.
Featured image from DALL-E, chart from TradingView.com
