As President-elect Donald Trump prepares to take office for a second term, significant changes to the cryptocurrency regulatory landscape are on the horizon. A wave of cryptocurrency ETFs is expected to be approved in the coming year, signaling a potentially transformative shift for digital assets in the United States.
Emerging participants in cryptocurrency ETFs
According to Bloomberg ETF expert Eric Balchunas, the next candidates for approval will likely be dual Bitcoin and Ethereum ETFs from companies such as Hasdex, Franklin Templeton and Bitwise Invest.
Balchunas also noticed the recent one rejection Solana reports, indicating that both Solana and XRP ETFs will have to wait until the recent administration of the U.S. Securities and Exchange Commission (SEC) takes over for their applications to be “seriously considered.”
However, the path to obtaining consent may not be effortless. Balchunas noted that “complex legal issues” need to be resolved regarding the classification of these tokens, particularly regarding their status as “securities.”
In turn, Litecoin, seen as a fork of Bitcoin, could be classified as a commodity by the SEC, which could augment its chances of approval. It is worth noting that the recent issuer Canary Capital is the only entity applying for the issuance of Litecoin HBAR ETF.
While Balchunas believes both have a relatively higher chance of approval, he cautioned that it is unclear whether there will be sufficient investor demand for these products.
Trump’s regulatory change
This projected augment in cryptocurrency ETF approvals is consistent with Trump’s broader regulatory shift toward digital assets. December 4 Trump confirmed Paul Atkins as the potential recent SEC chairman, reinforcing his commitment to supporting a cryptocurrency-friendly environment.
This change occurs after resignation current Securities and Exchange Commission Chairman Gary Gensler, whose last day in office coincides with Trump’s inauguration on January 20.
Atkins, who served as SEC commissioner from 2002 to 2008 under President George W. Bush, is known for advocating for reducing regulatory burdens on financial markets.
Trump expressed confidence in Atkins, stating in a Truth Social post that he is a “proven leader on commonsense legislation.” The president-elect emphasized Atkins’ belief in potential capital markets and the importance of digital assets in driving economic growth.
As the recent administration prepares to take office, attention now turns to the Commodity Futures Trading Commission (CFTC) and who will lead the agency.
Sources indicated to Fox Business that this was coming Trump administration could empower the CFTC to regulate certain crypto assets, further shaping the future of digital currency regulation in the US.
However, all of these developments are seen as significantly positive for the broader cryptocurrency industry. Anticipated regulatory changes and a more enabling environment are expected to support wider institutional adoption.
Featured image from DALL-E, chart from TradingView.com
