A Great Week for Crypto Investors
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It’s been a great week for crypto investors.
Two significant milestones: the passage of better crypto laws in the U.S. House of Representatives, and the approval of Ethereum ETFs.
Here’s why we’re celebrating.
For most of crypto’s history, it has lived in a regulatory grey area. It’s not illegal — but because the United States SEC can sue any project at any time, it also feels not quite legal.
Crypto is new. The laws are old. This confuses regulators and investors alike.
For the past several years, we’ve been asking for “regulatory clarity,” i.e., better laws and better explanation of what is legal and illegal.
We all want to follow the law. And if we can be clear about the law, it is likely to bring a flood of new people and businesses investing in crypto. This investment will help us build more useful crypto products, services, and companies.
In short: most people don’t want to build a company that could be sued by the SEC at any time. If the laws are clarified, a lot of people will build more crypto companies, which will be good for the world.
This week, we got two big steps forward in our quest for regulatory clarity. Here’s why they matter.
Milestone #1: The Passage of FIT21
A new bill, the Financial Innovation and Technology for the 21st Century Act (FIT21) passed the U.S. House of Representatives with overwhelming bipartisan support. Here’s what it brings:
· Clearer Regulation: No more confusion about which agency (SEC or CFTC) regulates what crypto. FIT21 defines how decentralization impacts regulation, giving crypto companies a roadmap for compliance.
· Innovation and Consumer Protection: The bill helps innovation by establishing a clear path for launching new crypto companies. At the same time, it protects consumers with measures like segregated customer funds and disclosure requirements.
· US Friendliness: Without clear rules, crypto innovation has been moving overseas. FIT21 creates a friendly environment for crypto companies to thrive in the US, potentially leading to the next big tech giants.
The bill is not perfect. And it still has to go to the Senate, which will likely pick it apart and throw it back to the House for another vote. It may even be scrapped and a new bill drafted in its place — which may be even better, according to industry experts.
Once the Senate and House agree on it, the bill goes to the President. Biden has said he opposes the bill, but as he sees strong bipartisan support behind FIT21, he has signaled he will not veto it.
TLDR: Once it passes the House, Senate, and President, the bill becomes a law. One down, two to go.
It’s a long, long journey to the capital city. It’s a long, long wait while it’s sitting in committee. But we’ve passed a mighty milestone.
Milestone #2: Approval of Ethereum ETFs
You’ll remember that earlier this year, the SEC approved bitcoin spot ETFs, letting individual investors buy bitcoin through their brokerage accounts, rather than having to open accounts on crypto exchanges or set up confusing digital wallets.
These bitcoin ETFs have been wildly popular: today they are some of the most actively traded ETFs in the United States. Investors have poured billions of dollars into these ETFs, driving up the price of bitcoin to fresh highs in 2024.
Now, Ethereum ETFs are on their way.
The SEC has given the green light to eight new ETFs that will allow you to invest in Ethereum through traditional brokerage accounts. Here’s what this means:
· Easier access to Ethereum: You won’t need to deal with cryptocurrency exchanges or wallets directly. You can buy and sell these ETFs just like any other stock on your brokerage platform.
· Increased investor protection: ETFs are regulated by the SEC, which offers greater security and transparency than unregulated crypto exchanges.
· Potential for wider adoption: This approval will lead to more mainstream interest in Ethereum which is likely to drive up the price of ETH.
The ETFs are from well-known issuers like Grayscale, VanEck, and Fidelity. This is the real deal. They’ve not yet hit the market, but they’re on the way.
If you have been faithfully investing in our Blockchain Believers Portfolio or Future Winners Portfolio: congratulations! Both hold BTC and ETH as their two core investments — and these investments are now going mainstream.
Also: Coinbase will serve as the custodian for most of these ETFs, holding the actual Ethereum. This is great news for $COIN investors as well, as Coinbase becomes a foundational pillar of crypto’s integration with traditional finance.
Milestone #2: Approval of Ethereum ETFs
You’ll remember that earlier this year, the SEC approved bitcoin spot ETFs, letting individual investors buy bitcoin through their brokerage accounts, rather than having to open accounts on crypto exchanges or set up confusing digital wallets.
These bitcoin ETFs have been wildly popular: today they are some of the most actively traded ETFs in the United States. Investors have poured billions of dollars into these ETFs, driving up the price of bitcoin to fresh highs in 2024.
Now, Ethereum ETFs are on their way.
The SEC has given the green light to eight new ETFs that will allow you to invest in Ethereum through traditional brokerage accounts. Here’s what this means:
· Easier access to Ethereum: You won’t need to deal with cryptocurrency exchanges or wallets directly. You can buy and sell these ETFs just like any other stock on your brokerage platform.
· Increased investor protection: ETFs are regulated by the SEC, which offers greater security and transparency than unregulated crypto exchanges.
· Potential for wider adoption: This approval will lead to more mainstream interest in Ethereum which is likely to drive up the price of ETH.
The ETFs are from well-known issuers like Grayscale, VanEck, and Fidelity. This is the real deal. They’ve not yet hit the market, but they’re on the way.
If you have been faithfully investing in our Blockchain Believers Portfolio or Future Winners Portfolio: congratulations! Both hold BTC and ETH as their two core investments — and these investments are now going mainstream.
Also: Coinbase will serve as the custodian for most of these ETFs, holding the actual Ethereum. This is great news for $COIN investors as well, as Coinbase becomes a foundational pillar of crypto’s integration with traditional finance.
Two Big Crypto Milestones
Ralph Waldo Emerson said, “Life isn’t a matter of milestones, but of moments.”
But screw Emerson. The milestones feel pretty great.
This week saw two significant milestones for crypto investors. Those of you who have been with us on the journey: congratulations on keeping the faith. And for everyone else: it’s never too late to get started.
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