The article discusses the potential benefits for Ethereum (ETH) under a Trump administration, which is likely to be more favorable towards cryptocurrencies. Some key points mentioned in the article include:
- Shift in regulatory landscape: The change in administration could lead to a shift in the regulatory landscape, with the CFTC potentially taking over oversight of crypto assets.
- FIT21 bill may become unnecessary: The FIT21 bill, which aimed to introduce a federal framework for crypto regulation and hand over spot crypto market regulation to the CFTC, may no longer be necessary if the Trump administration decides to give the CFTC regulatory control of crypto.
- Increased adoption of ETH staking yields: With a more favorable administration, ETF issuers may be able to offer native yield on ETH staking, which could attract institutional investors and improve ETH’s economics.
- Potential approval of ETH ETFs with native yield: The SEC may approve ETFs that offer native yield on ETH staking, which would allow asset managers to leave some spread for themselves and make ETH more attractive in a declining interest rate environment.
The article also mentions several experts who believe that the Trump administration will be beneficial for Ethereum, including:
- SEC Commissioner Peirce: Who has flagged the potential of revisiting decisions to block in-kind redemptions for crypto ETFs and adding staking for the Ether ETFs.
- Crypto lawyer Robert Nupp: Who believes that many within crypto are underestimating the positive impact of Trump on the industry and expects the launch of World Liberty Financial, a crypto-focused fund, to be a significant endorsement of Ethereum and DeFi.
- Brownstein lawyers: Who noted in a client alert that the FIT21 bill had stalled but would likely serve as the starting point for legislative efforts in the new Congress.
Overall, the article suggests that the Trump administration may bring about significant benefits for Ethereum, including increased adoption of ETH staking yields and potential approval of ETFs with native yield.
