At the recent Consensus crypto conference, Katherine Dowling, a top executive at Bitwise Asset Management, disclosed that the SEC might have informed former President Donald Trump about the early approvals of spot Ethereum ETFs.
This revelation adds an intriguing layer to the regulatory saga that saw the unexpected greenlighting of these financial products.
Political Dynamics and Crypto’s Election Influence
Dowling, who serves as general counsel and CCO for Bitwise, expressed her surprise at the SEC’s decision, which also seemed to catch other major players like BlackRock and Fidelity off-guard.
Dowling stated, “I think Trump knew we were getting those approval orders and he might have very well been the only person who knew cause we didn’t.”
Speculations suggest that the approvals were influenced by the political landscape, particularly the upcoming elections and President Joe Biden’s strategy to soften his stance on crypto, likely to sway younger, tech-savvier voters.
The approval of the 19b-4 forms marks a crucial step for Ethereum ETFs, though trading cannot commence until the issuers complete their S-1 filings with the SEC, a process that could span weeks to months.
Moreover, there are speculations that Trump’s recent change of heart regarding cryptocurrencies could have been a political decision. These advancement point toward the increasing incorporation of crypto in the politics of the United States and along with that suggesting that it might become a major point of debate in the next presidential election of the country.
Also Read: Musk and Trump Discuss Crypto Policy Amid Campaign Trails
