Ethereum Prices Rise at SEC, Warren News

Crypto markets were jolted on Monday with news that the Securities and Exchange Commission reached back out to potential issuers of Ethereum ETFs, asking them to update their registrations. The move was widely interpreted as a sign that the agency was suddenly indifferent to its long-awaited plan to reject ETFs. In response, Ethereum rose from around $3,100 to over $3,700 by midnight, a nearly 20% gain that also gave a boost to cryptocurrency prices in general.

Reports of the request for new registrations came three days before the SEC faced a deadline to approve or reject an Ethereum ETF application from VanEck, one of 11 companies that launched a first-of-its-kind ETF for Bitcoin in January. Those ones Bitcoin ETFs sparked speculation frenzy This pushed the coin higher, and from all indications, it appears that the markets are betting that the good times will begin again, this time with Ethereum as the band leader.

To be clear, SEC approval is far from certain, 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 request is approved, VanEck and others will have to wait weeks or months for the SEC to approve their corporate paperwork. But it’s easy to forgive the crypto crowd for feeling optimistic and a little giddy given what else has happened in recent days.

For starters, Monday also saw the chairman of the FDIC, a powerful opponent of cryptography, resign following a scandal over a culture of toxicity and sexual harassment at the agency. Meanwhile, crypto boosters are still jubilant after a dozen Senate Democrats, including Majority Leader Charles Schumer, bucked their own party’s position and voted in favor of a bill that would make it easier for banks hold crypto. Although President Joe Biden previously said he would veto the bill, not everyone is sure of that following the Senate vote and the growing realization among his party that encryption is more popular than people thought.

If pro-crypto forces are the winners of this surprising series of developments in Washington, D.C., 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 has also long enjoyed a deal with the president that allows her to dictate broad swaths of financial policy — including his fierce opposition to crypto. But last week, the Senate’s vote on the crypto bill shows that her control over 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 in her party is waning.

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

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

DECENTRALIZED NEWS

A long time Shades of gray CEO Michael Sonnenshein is stepping down to be replaced by Peter Mintzberg, head of strategy for asset and wealth management at Goldman Sachs.. (Fortune)

A bankruptcy court’s approval of a $3 billion liquidation of Genesis Global includes a $2 billion settlement between Genesis It is New York State which will be used to compensate investors. (CNBC)

A UK judge wrote that Satoshi fake Craig Wright lied to the court “extensively and repeatedly,” leading the Bitcoin developers Wright sued to suggest they could seek criminal perjury charges. (CoinDesk)

In latest sign, crypto venture capital market is back, with focus on blockchain New Capital Form said it is raising $100 million with a focus on merchant markets and payments. (WSJ)

Dating app giant Match announced a new coalition with goal, Coin baseand other crypto companies to combat romance and pig slaughter scams. (Fortune)

MEME OF THE MOMENT

Warren’s Opponents Take a Preliminary Victory Lap:

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