Thursday 23 May 2024 was a landmark day for the crypto-currency industry, with several positive developments that promise to reshape the financial landscape. The Securities and Exchange Commission (SEC) approved major proposals from Grayscale, BitwiseInvest and iShares, marking a potential turning point for institutional investment in cryptoassets.
The green light from the SEC
While the news was already anticipated, the SEC has given its final approval for cryptocurrency ETF proposals submitted by Grayscale, BitwiseInvest and iShares. This approval, coming at the last possible moment, means a significant opening for traditional investors into the cryptocurrency market. According to a Grayscale spokesperson, "This approval represents an essential bridge between traditional finance and the cryptocurrency market."
Thursday 23 May also saw the repeal of SAB 121 by the SEC and the passage of the FIT Act by the House of Representatives. These developments, combined with the approval of ETFs, underscore a notable change in attitude by regulators towards the cryptocurrency industry.
Another notable event on Thursday was the House of Representatives' approval of legislation banning the Federal Reserve from creating a central bank digital currency (CBDC). This decision highlights the growing concerns around the centralisation of digital currencies and reinforces the position of traditional cryptocurrencies as a decentralised alternative.
The market reacted positively to the news, with Ethereum up 5% in a matter of hours before closing the day higher at $3,784. Investors seem to be welcoming these developments, seeing the relaxed regulations as a gateway to new investment opportunities and greater stability for cryptocurrencies.
With these new regulations, the crypto-currency industry could see accelerated growth and wider adoption. Experts believe that this series of decisions could act as a catalyst for further innovation and further integration of cryptos into the international financial system. According to one financial analyst, "We are at the dawn of a new era for cryptocurrencies. There is still a long way to go, but the foundations are now solid for a promising future."
