Regulation
Senator Bill Hagerty pressures SEC for clearer crypto regulations
US Senator Bill Hagerty has announced plans to urge the US Securities and Exchange Commission (SEC) to provide clearer regulations for the cryptocurrency sector, as Odaily reports.
Hagerty says that without a proper regulatory ecosystem, the cryptocurrency industry risks being driven out of the United States. In response, SEC Chairman Gary Gensler emphasized that the distinction is between violations of the law and simply not liking them, rather than lack of regulatory clarity.
Advocacy for clear guidelines
Hagerty highlighted the existing uncertainty and ambiguity in the SEC’s actions and stressed that this “does not have to be the case.”
He advocates for clear guidelines to foster the growth and stability of the cryptocurrency sector in the United States, expressing concern that unclear regulations could push the burgeoning sector to other regions.
Rather, 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 ongoing discussions and divergent views within the U.S. government regarding 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 approving the listing of cash exchange-traded funds (ETFs) during a hearing Thursday before the U.S. Senate Appropriations Committee.
When asked by Senator Hagerty about the approval process for ether ETFs, Gensler opined that approvals could happen this summer.
SEC Chairman Gary Gensler Suggests Approval of Ethereum ETFs Near Late Summer
He noted that individual issuers are still in the registration process, which is proceeding smoothly, and anticipates that registration approvals will occur “sometime this summer.”
On May 23, the SEC approved the listing of spot ether ETFs. Industry executives predict trading could begin as early as July or August, and probably before November.
Market reactions and economic indicators
Cryptocurrency markets saw a slowdown during U.S. trading hours on Thursday, according to CoinDesk. The cut follows the Federal Reserve’s indication that it expects only one rate cut this year.
Ether led a mid-morning rally after Gensler’s statement at the Senate hearing that he expected full approvals for ether spot ETFs by the end of the summer. This announcement briefly caused the price of ether to rise by 1%, but it quickly fell by more than 3% an hour later.
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% during the same period.
Bitcoin price also fell nearly 3%, trading near a one-week low of $66,500. The market slowdown began Wednesday afternoon following the results of the Federal Reserve’s hawkish policy meeting.
The U.S. central bank kept its benchmark federal funds rate range between 5.25% and 5.50%, but surprised many with its updated projections suggesting a single 25 basis point rate cut in 2024. Rate futures markets had forecast two to three movements of 25 basis points. This year.
Macroeconomic sentiment in the crypto market did not improve with the release of US economic data on Thursday morning, indicating a continued slowdown in inflation and the economy.
The May producer price index (PPI) fell 0.2% against an expected rise of 0.1%. On an annual basis, the PPI increased by 2.2% versus 2.5% expected. Initial unemployment claims also reached a nearly one-year high, at 242,000, compared to an expected 225,000.
Despite recent bullish news, such as improving inflation data, a pro-Bitcoin presidential frontrunner, spot ETH ETF approvals and other risk asset markets reaching new all-time highs, the market has struggled to maintain growth.