Experts predict Joe Biden’s crypto regulation pivot

The Biden administration could be preparing for a strategic pivot on crypto regulation, potentially aligning itself more closely with the digital assets community ahead of the upcoming November election. This speculation follows recent developments indicating possible approval of a spot Ether ETF, a significant change in position from the Securities and Exchange Commission (SEC).

On Thursday, Bloomberg ETF analysts James Seyffart and Eric Balchunas significantly increased their forecasts for approval of a spot Ether ETF from 25% to 75%, citing sources close to the SEC. Analysts have reported a sudden change in sentiment within the SEC, perhaps reflecting a broader policy recalibration by the Biden administration in response to former President Donald. Trump’s endorsement of Bitcoin and cryptocurrencies.

This news sent shockwaves through the financial and crypto markets, with the prices of Ethereum and other altcoins seeing double-digit increases. Notably, the approval process requires that the SEC give the green light to both 19b-4s, which involves changes to trading rules, and S-1s, the registration statements required to launch ETFs. This decision is considered the first concrete sign of the Biden administrationThe reorientation of towards a more crypto-friendly policy framework.

The crypto community speculates on a 180-degree U-turn

Following this news, several experts have come forward, speculating on a complete turnaround on the part of the Biden administration. Haseeb Qureshi, Managing Partner at Dragonfly, declared via X: “I’ve been saying for weeks that Biden will ease up on crypto before the election. He doesn’t want to lose votes in a close race on what is ultimately a minor issue for him. The ETF is the first sign of this – I think other agencies will also relax over the coming months.

This sentiment suggests a tactical adjustment rather than a complete policy overhaul, aimed at mitigating political risks rather than defending digital currencies.

Sam Lyman, director of public policy at Riot Platforms, highlighted a series of pro-crypto changes, including Trump’s clear support for digital assets, the SEC’s policy reversal on the Ether ETF, and important legislative developments .

Lyman provided a list of recent victories for the crypto industry, such as the repeal of SAB 121 and the resignation of the FDIC chairman, seen as the result of political pressure from pro-crypto factions.

See more

Jake Chervinsky, General Counsel of Variant Fund, commented on the potential implications of ETF approval beyond its market impact. “If the ETH spot ETF is approved, it will be a real shock to everyone I know in Washington who is close to this process. That doesn’t mean it won’t happen. This means the approval could signal a major shift in U.S. crypto policy after the SAB 121 vote, perhaps bigger than the ETF itself,” Chervinsky explained.

Both Vijay Boyapati and Adam Cochran agreed with Chervinsky. Boyapati, a renowned crypto expert, underlines political calculations at play, suggesting that Democrats were recalibrating their position to mitigate electoral losses.

“The SEC’s abrupt about-face on approving the Ethereum ETF is purely political. The Democrats understood that their hostility could potentially cost them the election and Biden likely commandeered the SEC to be friendlier despite the [Senator] Warren wing of the party,” Boyapati remarked.

Cochran, partner at CEHV, extended on this, indicating a broader awareness within the Democratic Party that a pro-crypto stance could appeal to a broader voting base, including moderates and independents focused on financial policies.

He noted via X:

Warren had control over financial policy under the Democratic regime. This shows that Democrats in the WH and Senate are starting to realize that this is hurting their chances of getting elected. […] This is a significant and rapid change in crypto policy, […] If that’s correct, it’s bigger than the ETF itself. This could mean that winter is over and it’s time for a crypto renaissance in the United States!

At press time, ETH was trading at $3,659, up 18% in the last 24 hours.

Ether price, 1 week chart | Source: ETHUSD on TradingView.com

Featured image from Medium / Joe Biden, chart from TradingView.com

Fuente