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EU elections 'wildcard' could pave the way for first Ether ETF

EU Elections ‘Wildcard’ Could Pave the Way for First Ether ETF

The outcome of the upcoming European Union elections could significantly influence cryptocurrency regulations, potentially paving the way for the approval of the first spot Ether exchange-traded funds (ETFs). As the EU prepares for parliamentary elections from June 6 to June 9, experts like Jag Kooner, the head of derivatives at Bitfinex, consider this period a critical “wildcard” for future crypto regulations.

Potential Political Shifts and Crypto Regulation

According to Kooner, a major shift in the political landscape is anticipated, with right-wing and populist parties expected to gain substantial ground. “This shift could influence regulatory stances, potentially leading to more stringent controls or, conversely, more supportive policies depending on the composition of the new parliament,” Kooner told Cointelegraph.

Right-Wing Parties and Crypto Protection

Right-wing parties, gaining traction in the EU, could introduce more protective measures for the crypto industry. Marina Markezic, the co-founder and executive director of the European Crypto Initiative (EUCI), suggests that these parties could leave a mark on the Commission’s activities, including the portfolios of upcoming Commissioners, which might exhibit more protectionist tendencies.

However, Markezic also notes, “This political shift might lead to the adoption of the generally counter-status quo rhetoric of the crypto industry by representatives from the (far) right, presenting a new and unexpected ally for crypto advocacy topics in Brussels and Strasbourg.”

Influence on MiCA and Crypto Assets Regulation

The election results could also impact the upcoming implementation of the Markets in Crypto-Assets (MiCA) bill, the first comprehensive regulatory framework for cryptocurrencies in the EU. Expected to take full effect starting December 2024, MiCA could set the stage for more standardized crypto regulations across Europe.

Progress Towards Ether ETF Approval in Europe

Despite potential conservative regulatory shifts, the momentum for spot Ether ETFs in Europe is building, following the U.S. Securities and Exchange Commission’s (SEC) approval of 19b-4 filings for eight spot Ether ETF issuers on May 23. “The approval of Ethereum ETFs in the EU is gaining traction… VanEck and Franklin Templeton have already listed their ETH ETFs on the DTCC in anticipation of regulatory approval,” Kooner elaborated.

Increased Crypto Adoption by Major European Banks

The clarity provided by the MiCA bill is also encouraging some of Europe’s largest banks to move into the crypto space. Germany’s largest federal bank, the Landesbank Baden-Württemberg (LBBW), announced plans to offer crypto custody services to institutional clients in the second half of the year. Additionally, Raiffeisen, Austria’s largest community banking group, partnered with Bitpanda to offer digital asset services to retail banking customers in April.

Conclusion

The EU elections represent a pivotal moment for the future of cryptocurrency regulations and the potential approval of the first spot Ether ETFs. As political dynamics shift, the integration of comprehensive regulatory frameworks like MiCA could facilitate a more stable and progressive environment for cryptocurrencies across Europe.

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Name Price24H (%)
Bitcoin(BTC)
$64,823.55
3.31%
Ethereum(ETH)
$3,472.28
4.26%
BNB(BNB)
$579.26
4.57%
Solana(SOL)
$157.42
3.86%
XRP(XRP)
$0.57
7.06%

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