Major players in the cryptocurrency industry are enhancing their political engagement in the United States due to ongoing delays in the approval of cryptocurrency ETFs, which have been impacted by the government shutdown. Executives from leading companies like Ripple, Coinbase, Chainlink, Galaxy, Kraken, Uniswap, and Circle are preparing for a pivotal meeting in Washington. This gathering will take place under the guidance of New York Senator Kirsten Gillibrand, a Democrat known for her favorable outlook on digital currencies.
Building Bridges with Lawmakers
Eleanor Terrett, a journalist with Fox Business, highlighted on October 20 that the meeting will bring together influential figures such as Brian Armstrong, CEO of Coinbase, Sergey Nazarov, founder of Chainlink, and Mike Novogratz from Galaxy. High-profile policymakers like Kristin Smith, President of Solana Policy Institute; Stuart Alderoty, legal director of Ripple; and Dante Disparte, CSO of Circle, underscore the importance of this high-level discourse.
The forum intends to outline frameworks for decentralized finance, explore legal market structures, and delve into the future trajectory of crypto policies. The impetus for this dialogue with Democrat senators stems from stalled discussions with Republican lawmakers and critiques of a newly proposed legislation viewed as restrictive by key industry voices, including Armstrong, who remarked that the bill might hinder innovation.
What’s Causing ETF Approval Delays?
The meeting’s timing coincides with prolonged setbacks in the ETF approval process. As the U.S. government shutdown enters its fourth week, the SEC has missed critical decision timelines for ETFs tied to altcoins such as Litecoin, Solana, and XRP.
Investor sentiment has soured amid these delays, shrinking the overall cryptocurrency market valuation to $3.5 trillion, which translates to a $850 billion loss. The Crypto Fear and Greed Index, monitored by CoinMarketCap, quickly shifted from “greed” to “extreme fear.” To address this anxious climate, ETF hopefuls are revising their 19b-4 forms to comply with the SEC’s updated General Listing Standards, indicating a shift toward regulatory standardization.
“The proposed legislation could stifle innovation instead of bolstering it,” said Brian Armstrong, hinting at the urgency for favorable regulatory changes.
Through this collaborative approach, industry leaders hope to foster a more conducive environment for digital currencies in the U.S., ensuring that the burgeoning crypto market continues to evolve within a supportive legislative framework.
