U.S. Senator Bill Hagerty has announced his intention to urge the U.S. Securities and Exchange Commission (SEC) to provide clearer regulations for the cryptocurrency industry, as reported by Odaily.
Hagerty contends that without a proper regulatory ecosystem, the cryptocurrency sector risks being driven out of the United States. In response, SEC Chairman Gary Gensler emphasized that the distinction lies between violations of the law and the mere dislike of them, rather than a lack of regulatory clarity.
Advocacy for Clear Guidelines
Hagerty highlighted the existing uncertainty and ambiguity in the SEC’s actions and stressed that this “does not need to be the case.”
He advocates for clear guidelines to foster the growth and stability of the cryptocurrency industry within the United States, expressing concern that unclear regulations could push this burgeoning sector to other regions.
Contrarily, Gensler maintains that the current regulations are sufficiently clear and that the industry’s challenges stem from non-compliance and dissatisfaction with existing laws rather than a lack of clarity.
This debate underscores the ongoing discussions and differing perspectives within the U.S. government regarding the regulation of the rapidly growing cryptocurrency industry. The outcome of these discussions will significantly impact the future of cryptocurrencies in the United States.
SEC Chairman Gary Gensler also addressed the timeline for spot ether exchange-traded fund (ETF) listing approvals during a Thursday hearing at the U.S. Senate Committee on Appropriations.
When asked by Senator Hagerty about the approval process for ether ETFs, Gensler estimated that approvals could occur sometime this summer.
He noted that individual issuers are still navigating the registration process, which is proceeding smoothly, and anticipated listing approvals to occur “sometime over the course of this summer.”
On May 23, the SEC approved the listing of spot ether ETFs. Industry leaders predict that trading could commence as early as July or August, and likely before November.
Market Reactions and Economic Indicators
The cryptocurrency markets experienced a downturn during U.S. trading hours on Thursday, according to CoinDesk. This decline followed the Federal Reserve’s indication that it only planned one rate cut this year.
Ether led a mid-morning bounce after Gensler’s statement in the Senate hearing that he expected full approvals for spot ether ETFs by the end of the summer. This announcement briefly boosted ether’s price by 1%, but it soon dropped over 3% an hour later.
At the time of reporting, ether was trading at $3,472, a 3% decrease over the past 24 hours. The broader CoinDesk 20 Index also fell by 4.9% during the same period.
Bitcoin’s price also fell nearly 3%, trading near a one-week low of $66,500. The market downturn began on Wednesday afternoon following the Federal Reserve’s hawkish policy meeting results.
The U.S. central bank maintained its benchmark fed funds rate range at 5.25%-5.50%, but surprised many with its updated projections suggesting only one 25 basis point rate cut in 2024. Rate futures markets had been pricing in two to three 25 basis point moves this year.
The macroeconomic sentiment in the crypto market did not improve with the release of U.S. economic data on Thursday morning, indicating a continued softening in both inflation and the economy.
The May Producer Price Index (PPI) fell 0.2% against expectations for a rise of 0.1%. On a year-over-year basis, PPI increased by 2.2% versus forecasts for 2.5%. Initial jobless claims also rose to nearly a one-year high of 242,000 against expectations of 225,000.
Despite recent bullish news, such as improving inflation data, a Bitcoin-friendly presidential frontrunner, spot ETH ETF approvals, and other risk asset markets reaching new all-time highs, the market has struggled to sustain growth.
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