Cryptocurrencies are witnessing a decline in regulatory pressure as the new U.S. President takes office. The transition from a time when 130‑year‑old laws were wielded as regulatory weapons to the current environment has not been smooth. This shift marks a significant change for the crypto sector, signaling a new era where permanent transformations are taking place.
SEC, CFTC, and Cryptocurrencies
Two leading financial market regulators are convening today at the SEC headquarters. Notable figures from the cryptocurrency world are participating in a roundtable discussion that includes both the SEC and CFTC, two organizations instrumental in crafting legislation that directly impacts cryptocurrencies. Their reunion after 14 years highlights the significance of this event in shaping the future of crypto regulations.
The last time the SEC and CFTC gathered together was on August 1, 2011, to discuss swap regulations. After 14 years, these regulatory bodies are reconvening to tackle issues related to cryptocurrencies. This time, giant players from Wall Street are also meeting with crypto pioneers to discuss the integration and future prospects of this digital asset class.
One of the three panels will feature key industry leaders such as Jeff Sprecher, CEO of ICE (the parent company of NYSE), Terry Duffy, CEO of CME Group, and Adena Friedman, CEO of NASDAQ. They will be joined by executives from leading cryptocurrency companies like Kraken, Polymarket, and Kalshi.
Following this, executives from JPM, Bank of America, and Citadel will assemble with representatives from Cryptocom, renowned crypto market maker Jump, and Robinhood to further deliberate on the subject.
Cryptocurrency Week
On Wednesday, the Senate Finance Committee is scheduled to meet with taxation of cryptocurrencies as the main agenda. Should the outcomes favor crypto enthusiasts, we might see a surge in investors willing to assume risks in these markets. Additionally, this week is a pivotal moment for ETF approvals, potentially setting significant precedents.
Grayscale has obtained approval for its crypto basket fund, though approvals for spot altcoin ETFs remain pending. Of these, LTC is among the altcoins with the highest likelihood of receiving approval. Thursday is the deadline for the application submitted by Canary, which means a decision to approve or reject is imminent. This decision will serve as a critical indicator for other altcoins as well. The SEC could commence October by granting an altcoin ETF approval, or opt to approve all pending ETFs simultaneously by temporarily suspending listings.