Regulation
Senator Bill Hagerty urges SEC to regulate cryptocurrencies more clearly
US Senator Bill Hagerty has announced his intention to urge the US Securities and Exchange Commission (SEC) to provide clearer regulations for the cryptocurrency industry, as reported by Odaily.
Hagerty argues that without an adequate regulatory ecosystem, the Cryptocurrency Industry Risks be kicked out of the United States. In response, SEC Chairman Gary Gensler emphasized that the distinction is between violations of the law and simple aversion to them, rather than a lack of regulatory clarity.
Support for clear guidelines
Hagerty highlighted the uncertainty and ambiguity that exists in the SEC’s actions and stressed that “it doesn’t have to be that way.”
He supports clear guidelines to foster the growth and stability of the cryptocurrency industry in the United States, expressing concern that unclear regulations could push this growing sector to other regions.
In contrast, Gensler argues that current regulations are sufficiently clear and that the industry’s challenges arise from non-compliance and dissatisfaction with existing laws rather than a lack of clarity.
This debate highlights the ongoing discussions and differing perspectives within the US government regarding the regulation of the rapidly growing cryptocurrency industry. The outcome of these discussions will have a significant impact on the future of cryptocurrencies in the United States.
SEC Chairman Gary Gensler also addressed the timeline for approval of the listing of Exchange Traded Funds (ETFs) during a Thursday hearing in the U.S. Senate Appropriations Committee.
When Senator Hagerty asked him about the approval process for ether ETFs, Gensler was appreciative approvals could happen this summer.
SEC Chairman Gary Gensler suggests approving Ethereum ETFs later this summer
He noted that individual issuers are still going through the registration process, which is progressing smoothly, and expects listing approvals to occur “over the course of this summer.”
On May 23, the SEC approved the listing of spot ether ETFs. Industry leaders predict that negotiations could begin as early as July or August, and possibly before November.
Market reactions and economic indicators
Cryptocurrency markets fell during trading hours in the United States on Thursday, according to CoinDesk. This drop followed the Federal Reserve’s indication that it planned only one rate cut this year.
Ether subsequently led a mid-morning rebound Gensler’s statement at the Senate hearing which expected full approval for spot ether ETFs by the end of the summer. This announcement briefly raised the price of Ether by 1%, but an hour later it soon fell by more than 3%.
At the time of reporting, ether was trading at $3,472, down 3% over the past 24 hours. The broader CoinDesk 20 index also fell 4.9% over the same period.
The price of Bitcoin also fell nearly 3%, trading near a one-week low of $66,500. The market decline began Wednesday afternoon following the results of the Federal Reserve’s hawkish policy meeting.
The US central bank maintained its key federal funds rate range at 5.25%-5.50%, but surprised many with its updated projections suggesting only a 25 basis point rate cut in 2024. Rate futures markets had priced in two or three 25 basis point moves. this year.
Macroeconomic sentiment in the cryptocurrency market did not improve with the release of US economic data on Thursday morning, indicating continued weakening in both inflation and the economy.
The May Producer Price Index (PPI) fell 0.2% versus expectations for a 0.1% increase. On a year-over-year basis, PPI increased 2.2% versus forecasts of 2.5%. Initial jobless claims also rose to near a one-year high of 242,000 versus expectations of 225,000.
Despite recent bullish news, such as improving inflation data, a Bitcoin-friendly presidential candidate, spot approvals of ETH ETFs, and other risk asset markets reaching new all-time highs, the market has struggled to sustain growth.