American Securities and Exchange Commission (SEC) Commissioner Hester Peirce pointed out that positive changes may come to the fore in the cryptocurrency industry under the management of the new chairman Paul Atkins, who will take office in January. Peirce is particularly optimistic about the possibility of some pending crypto ETF applications being approved.
New SEC and Cryptocurrencies
In his meeting with Zack Guzman, Peirce stated that the processes could proceed more easily if the majority of commissioners at the SEC were supportive.
Peirce stated that it is likely that in-kind redemptions and staking opportunities for ETF issuers will be implemented in the early period. This approach is designed to enable investors to capture more value. The ETH staking feature was opposed by the SEC this year, and issuers were unable to include this benefit in the filing. The fact that ETFs offer an additional 5% annual income through staking may trigger great interest.
SEC’s Current Position
Under previous managers’ control, the SEC had mandated cash-based origination methods, while issuers preferred the in-kind method. The in-kind method allows investors to receive payments in the base currency, while the cash generation method allows payments in US Dollars.
Also, Ethereum $3,264.5 While staking products in ETFs are expected to provide additional returns, market regulators oppose such flexible offers. In this process, it is stated that Bitwise plans to purchase the staking service called Attestant and offer it to its customers.
Broad Changes in the Crypto Industry
In addition to the policies of the upcoming new SEC administration towards the crypto market, it is stated that federal policies such as Operation Chokepoint 2.0 also affect the sector. It is claimed that this operation has restrictive effects on banks’ ability to provide services to crypto and Web3-based companies.
Crypto industry leaders have called for a re-examination of this operation, while the SEC is expected to review its own regulations.
As a result, it is evaluated that there may be significant changes in the cryptocurrency market under the new management of the SEC and that these changes may have a positive impact on the sector. Investors and market players are following these developments closely.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
