Memecoin ETF frenzy signals crypto is ‘testing the limits’ of a post-Gensler SEC

A flood of regulatory filings to motorboat exchange-traded funds tracking volatile, risky memecoins has shocked the crypto industry.

With Gary Gensler gone and a new, crypto-friendly fiscal watchdog successful place, money issuers are present placing bets connected however freewheeling the caller medication volition be.

“This is simply a lawsuit of issuers investigating the limits of what this SEC is going to allow,” James Seyffart, ETF expert astatine Bloomberg, said.

“I’m expecting the caller crypto task force, led by Hester Peirce, to apt beryllium the lynchpin successful determining what’s gonna beryllium allowed versus what isn’t.”

Tuttle Finance, a Connecticut-based money issuer, went adjacent further — submitting filings for leveraged memecoin funds similar BONK, MELANIA, and TRUMP.

During Joe Biden’s administration, Securities and Exchange Commission Chair Gensler led a crackdown connected assorted components of the crypto industry.

He sued immoderate of the industry’s largest firms, including Coinbase, Kraken, and Consensys, implicit alleged securities violations.

He besides held up the support of the archetypal Bitcoin ETF.

In January 2024, helium succumbed (but warned investors to beryllium wary).

And nether US President Donald Trump, who made a slew of pro-crypto promises connected the run way and launched his ain Trump memecoin, the manufacture has been galvanised.

While it took Bitcoin much than 10 years to get approved, money issuers are present betting connected a crypto-friendly medication approving caller ETFs overmuch faster, Kaiko expert Adam McCarthy told DL News successful January.

“The rules of the crippled person changed,” helium said.

Coinbase inspects token listings

There are present dozens of caller ETF filings for assets similar XRP, Polkadot, Litecoin, and Solana, to sanction a few.

Industry heads are besides changing their stance.

Brian Armstrong, the CEO of Coinbase, said that the crypto exchange’s listing argumentation needed to beryllium wholly overhauled. The institution reviews implicit 1 cardinal caller tokens each week, but the process has go tedious and untenable, helium aid

“It needs to determination from an let database to a artifact list, and utilise lawsuit reviews and automated scans of onchain information etc to assistance customers sift through,” helium said.

Liam Kelly is simply a Berlin-based newsman for DL News. Got a tip? Email him astatine [email protected].