“Democratic Party’s Shift in Cryptocurrency Policy: Voting to Overturn SAB 121, Signaling Positive Outlook for Ethereum ETF Release”

The SEC’s attitude towards Ethereum spot ETF has made a dramatic turnaround, following a recent change in the Democratic Party’s stance on cryptocurrencies. On May 16, some Democratic senators, along with Republican senators, voted to repeal the SAB 121 rule, which required custodians of cryptocurrencies to hold corresponding cash. This move signifies a significant shift in the Democratic Party’s cryptocurrency policy, as they oppose excessive SEC intervention. The SEC’s potential approval of the Ethereum spot ETF application before the May 23 deadline could lead to a major shift in US cryptocurrency policy. Cryptocurrency voters are expected to play a crucial role in the 2024 elections, prompting politicians to develop more nuanced policies to garner support. The repeal of SAB 121 has been criticized as it requires banks to hold cash for the cryptocurrencies they custody, which is seen as unreasonable. The Democratic Party’s change in stance is seen as a departure from the extreme left position and a move towards a more moderate approach. The SEC’s request for expedited updates to the 19b-4 application suggests a potential approval of the Ethereum spot ETF before the May 23 deadline. The overturning of SAB 121 and the potential approval of the ETF signal a significant shift in US cryptocurrency policy and could impact swing states’ trust in the Democratic Party. Cryptocurrency has become a topic in the presidential elections for the first time, with Trump urging cryptocurrency supporters to vote for him due to the Biden administration’s strict regulatory stance. The cryptocurrency industry is exerting increasing influence, with super PACs preparing to spend over $80 million to influence Congress and ensure friendlier policies. The recent signals from the Democratic Party indicate a loosening of attitudes towards cryptocurrencies, as they did not urge members to vote against the Republican-led “21st Century Financial Innovation and Technology” bill and the “Decentralized Monitoring of Digital Currencies Act.” The SEC’s request for expedited updates to the 19b-4 application suggests a potential approval of the ETF before the May 23 deadline. The approval of the spot Ethereum ETF would be surprising to those familiar with the individuals involved in the process and could signify a significant shift in US cryptocurrency policy, more important than the ETF itself. According to a survey conducted by the Crypto Council for Innovation in December last year, 41% of cryptocurrency user voters would choose Biden as the next US president, while 51% would choose Trump. This highlights the need for informed and nuanced policy-making to cater to the diverse and influential cryptocurrency voter base. Strategies to attract cryptocurrency user voters and swing states will be crucial for US politicians.