EU Elections Could Reshape the Future of Crypto Regulations and Ether ETFs
Summary:
The upcoming European Union elections could have a significant impact on the future of cryptocurrency regulations, including the acceptance of Ether exchange-traded funds (ETFs). Right-wing parties, expected to gain more ground in these elections, might introduce additional protective measures for the crypto industry. The result of the elections could also shape the implementation of the MiCA bill, the EU's first comprehensive regulatory framework for cryptocurrencies. The recent approval of Ether ETFs by the U.S. SEC has sparked optimism among European financial institutions about similar approvals for them.
This week's upcoming European Union elections could represent a crucial point for the future direction of cryptocurrency regulations and the acceptance of Ether exchange-traded funds (ETFs). From the 6th to the 9th of June, the European Union will conduct parliamentary elections, which may provide a crucial turning point for the direction of forthcoming cryptocurrency regulatory decisions, explains Jag Kooner, the immediate superior of the derivatives sector at Bitfinex.
In a conversation with Cointelegraph, Kooner states: "These political elections may lead to a fundamental rearrangement of the political framework, with a probable increase of right-wing parties and populist groups. This change of scenario may guide regulatory attitudes, possibly resulting in stricter management or alternatively more encouraging policies, depending on the new parliament's format."
Predictions for the 2024 European Union elections suggest a probable increase in right-wing party representation. An increase in right-wing parties could mean further protective measures for the cryptocurrency industry, suggests Marina Markezic, co-director and executive head of the European Crypto Initiative (EUCI).
In a discussion with Cointelegraph, Markezic states: "The ascendance of right-wing parties will likely have an impact on the activities of the Commission, including the forthcoming Commissioners' predicted portfolios, which may demonstrate more pronounced defensive tendencies." She suggests that right-wing political parties are poised to be unexpected promoters of crypto-friendly regulatory guidelines.
The result of the elections could also mold the oncoming establishment of the Markets in Crypto-Assets (MiCA) bill, representing the EU's first comprehensive regulatory outline for cryptocurrencies. It's predicted that MiCA will be fully operational from December 2024.
Despite the possible cautious approach towards crypto regulation, spot Ether (ETH) ETFs are on the rise among European financial institutions, bolstered by the U.S. Securities and Exchange Commission's (SEC) approval of the 19b-4 documents for eight spot Ether ETF issuers on May 23. Kooner from Bitfinex suggests the acceptance of these ETFs within the European Union is gaining prominence.
The clarity provided by the MiCA legislation has encouraged some of Europe's leading banks to move into the cryptocurrency sphere. Last April, Germany's biggest bank the Landesbank Baden-Württemberg (LBBW), reported it would provide crypto custody services to institutional clients starting in the second half of the year. At the end of April, Raiffeisen, Austria's most sizeable community bank network, teamed up with Bitpanda to provide digital asset services to customers using traditional retail banking.
Published At
6/3/2024 1:59:36 PM
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