Ethereum prices rise on the SEC, Warren news

Cryptocurrency markets got a jolt on Monday as the Securities and Exchange Commission got back to would-be Ethereum ETF issuers, asking them to update their filings. The move was widely interpreted as a sign that the agency had suddenly gotten cold feet about its widely expected plan to reject ETFs. In response, Ethereum went from around $3,100 to over $3,700 by midnight, a gain of nearly 20% that also gave a boost to cryptocurrency prices across the board.

Reports of the resubmission came three days before the SEC faces a final deadline to approve or reject an Ethereum ETF application from VanEck, one of 11 firms launching a first-of-its-kind Bitcoin ETF in January. Those Bitcoin ETFs gave rise to a speculative hypothesis frenzy this has pushed the currency to all-time highs and by the looks of it, it seems like the markets are betting that the good times will start all over again, this time with Ethereum as the leader.

To be clear, SEC approval is far from a sure thing, and in any case, VanEck’s decision this week only concerns a request to change the agency’s rules to allow an Ethereum ETF; even if the request is approved, VanEck and others will have to. wait weeks or months for the SEC to approve company filings. But it’s easy to forgive the cryptocurrency public for feeling optimistic and a little giddy considering what else has happened in recent days.

For starters, Monday also saw the chairman of the FDIC, a powerful opponent of cryptocurrencies, resign following a scandal over a culture of toxicity and sexual harassment within the agency. Meanwhile, cryptocurrency advocates are still jubilant after a dozen Senate Democrats, including Majority Leader Charles Schumer, bucked their own party’s position and voted for a bill that would make it easier for banks hold cryptocurrencies. Although President Joe Biden previously said he would veto the bill, not everyone is sure after the Senate vote and the dawning realization in his party that cryptocurrencies are more popular than once thought .

If pro-crypto forces are the clear winners in this surprising series of developments in Washington, D.C., there is also a clear loser: Senator Elizabeth Warren (D-Mass.). The Bay State’s senior senator is not only the leader of the progressive wing of her party, but she has also long enjoyed an agreement with the president that allows her to dictate large swathes of financial policy, including his fierce opposition to cryptocurrencies. But last week’s Senate vote on the cryptocurrency bill shows her grip on politics is weakening. At the same time, you have lost an important ally with the resignation of the FDIC chairman, whose job you fought to save. Warren’s influence in her party is waning.

Or, if you prefer a shorter version of all this drama out of DC, in the words of one crypto bro, the week can be summed up as “long Ethereum, short Warren.”

Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts

DECENTRALIZED NEWS

Long Greyscale CEO Michael Sonnenshein steps down to be replaced by Peter Mintzberg, head of strategy for asset and wealth management at Goldman Sachs.. (Fortune)

Bankruptcy court’s approval of $3 billion liquidation of Genesis Global includes $2 billion settlement between Genesis AND New York State which will be used to compensate investors. (CNBC)

A UK judge wrote that the fake Satoshi Craig Wright lied to the court “extensively and repeatedly,” prompting the Bitcoin developers sued by Wright to suggest they could pursue perjury charges. (CoinDesk)

In the latest sign, the crypto venture capital market is back, centered on blockchain New form of capital said it is raising $100 million focusing on merchant and payments markets. (WSJ)

The dating app giant Encounter announced a new coalition with Half, CoinBase, and other crypto firms to combat romance and pig slaughter scams. (Fortune)

MEME OF THE MOMENT

Warren’s opponents take a preliminary victory lap:

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