Ethereum Prices Rise on SEC, Warren News

Crypto markets were rocked Monday by news that the Securities and Exchange Commission has returned to potential Ethereum ETF issuers, asking them to update their filings. The move was widely interpreted as a sign that the agency had suddenly become fearful of its widely anticipated plan to reject ETFs. In response, Ethereum rose from around $3,100 to over $3,700 at midnight, a nearly 20% gain that also provided a boost to crypto prices across the board.

Reports of the request for new filings came three days before the SEC faced a final deadline to approve or reject an Ethereum ETF application from VanEck, one of 11 companies that launched a unique ETF in its kind for Bitcoin in January. Those Bitcoin ETF caused speculation frenzy which has pushed the currency to an all-time high and, by all appearances, it appears that markets are betting that the good times will begin again, this time with Ethereum as the leader of the group.

To be clear, SEC approval is far from a sure thing and, in any case, this week’s VanEck decision only concerns a request to change the agency’s rules to allow an Ethereum ETF – Even if the application is approved, VanEck and others will have to wait weeks or months for the SEC to approve the company’s documents. But it’s easy to forgive cryptocurrencies for feeling optimistic and a little giddy given what’s happened in recent days.

For starters, Monday also saw the FDIC chairman, a powerful opponent of crypto, resign following a scandal over a culture of toxicity and sexual harassment within the agency. Meanwhile, crypto supporters are still jubilant after a dozen Senate Democrats, including Majority Leader Charles Schumer, opposed their own party’s position and voted for a bill that would allow banks to hold cryptocurrencies more easily. While President Joe Biden earlier said he would veto the bill, not everyone is sure after the Senate vote and the realization within his party that crypto is more popular than once thought.

While pro-crypto forces are the clear winners in this surprising series of developments in Washington, DC, there is also an obvious loser: Senator Elizabeth Warren (D-Mass.). The Bay State’s senior senator is not only the leader of her party’s progressive wing, she also has long enjoyed a deal with the president that allows her to dictate large swathes of financial policy, including his fierce opposition to cryptography. But last week’s Senate vote on the crypto bill shows its grip on policy is weakening. At the same time, she lost an important ally with the resignation of the FDIC chairman, whose position she fought to save. Warren’s influence within her party is waning.

Or if you prefer a shorter version of all this drama coming out of DC, in the words of one crypto bro, the week can be summed up as “Ethereum long, Warren short.”

Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts

DECENTRALIZED NEWS

Long duration Shades of grey CEO Michael Sonnenshein resigns and is replaced by Peter Mintzberg, head of asset and wealth management strategy at Goldman Sachs.. (Fortune)

Bankruptcy court approval of $3 billion Genesis Global liquidation includes $2 billion settlement between Genesis And New York State which will be used to remunerate investors. (CNBC)

A British judge wrote that the fake Satoshi Craig Wright lied to the court “extensively and repeatedly,” prompting the Bitcoin developers being sued by Wright to suggest they could pursue criminal charges for perjury. (CoinDesk)

Latest sign, crypto venture capital market is back, focused on blockchain New form of capital said it was raising $100 million with a focus on commercial markets and payments. (WSJ)

Dating app giant Match announced a new coalition with Meta, Coinbase, and other crypto companies to combat romance and pig butchery scams. (Fortune)

EVEN WHERE

Warren’s opponents take preliminary victory lap:

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