Is crypto entangled in an ego war?
The recent legal setbacks faced by the U.S. Securities and Exchange Commission (SEC) have raised concerns among investors and institutions looking to enter the crypto market. SEC Chair Gary Gensler is set to testify before two congressional committees in September 2023, and the agenda of these meetings remains uncertain. People are eager to see if crypto will be discussed, particularly Gensler’s involvement in legal proceedings. One key aspect of the hearings will be the SEC’s plans regarding the approval of spot Bitcoin ETF applications, and there will be added pressure on the SEC to clarify its stance on these applications.
What to Expect in the Meeting?
- Gensler’s upcoming hearings will involve the U.S. Senate Banking Committee GOP and the U.S. House Committee on Financial Services Republicans.
- The SEC’s plans regarding the approval of spot Bitcoin ETF applications from companies like BlackRock, Ark Invest, Fidelity, and Bitwise will be discussed.
- There will be added pressure on the SEC to clarify its stance on these applications following the Grayscale spot Bitcoin ETF lawsuit victory.
- Grayscale is aiming to convert its Grayscale Bitcoin Trust (GBTC) into a spot ETF.
- Gensler has softened his aggressive stance on crypto, signaling a shift in his approach against crypto businesses.
Impact on Crypto Market
These events have a direct impact on the crypto market as they determine the fate of trending tokens. The price of XRP could potentially rise to $1 following Grayscale Investments’ successful appeal against the SEC. The cross-border money remittance token has already experienced a 2.8% increase to $0.53. Bitcoin (BTC) also surged to $28k after the SEC victory but may dip to $25k again.
Hot Take
The upcoming congressional hearings with SEC Chair Gary Gensler have significant implications for the crypto market. Investors and institutions are eagerly awaiting clarity on the SEC’s stance on Bitcoin ETF applications. Gensler’s softened stance on crypto may indicate a shift towards a fair and transparent regulatory framework. However, the crypto community’s call to #FireGaryGensler suggests that there are still concerns about his leadership. The outcome of these hearings will shape the future of crypto regulation in the United States.
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