Can Donald Trump’s Victory Enhance Chances of XRP ETF Approval?

• According to Nate Geraci, if Trump comes into force, it may enhance the chances of XRP ETF approval by the SEC.
• Trump’s support for cryptocurrencies stands in contrast to the current administration’s less positive views.
• XRP ETF is not sure even Donald Trump wins but it may increase the chance of approval.

The ETF Store president Nate Geraci has highlighted that Donald Trump winning the U.S. election could impact the XRP ETF growth. Recently, Nate Geraci appeared on the Thinking Crypto podcast and shared his views. The podcast was focused on Donald Trump’s pre-election statement.

Donald Trump has promised that he would create a crypto-friendly regulatory environment. This could lead to the U.S. Securities and Exchange Commission adopting an optimistic stance toward XRP ETFs.

This optimism for regulatory clarity is a reaction to the current administration’s seeming indictment of the cryptocurrency industry. Greaci also clarified that Trump doesn’t need to stick with the XRP ETFs approval after his victory.

However, it may bring smoothness for these types of projects. All institutional investors would be able to access digital assets. This can happen as an XRP ETF is offered by the asset managers Bitwise and Canary Capital.

The regulatory environment, market infrastructure, and surveillance have become dreary. It occurred because the SEC’s approval process power shifted to the others.

Key Surveillance Agreements for the Approval of XRP ETFs

Geraci noted many current obstacles to an XRP ETF, such as the possibility of a Trump administration that could increase support. The significant one is the absence of XRP futures contracts on CME.

This has contributed to the approval of Ethereum and Bitcoin ETFs. According to future markets, these assets are essential to the SEC’s decision-making process.

If there are currently no such futures contracts for XRP, this could further complicate the regulatory outlook. The SEC has frequently relied on this arrangement when approving a futures market.

Since XRP trades on largely unregulated exchanges, the SEC would probably also need a surveillance-sharing agreement. They would need this to prevent market manipulation.

How Politics Impact XRP ETFs Path?

According to Geraci, the cryptocurrency industry needs more transparency in the regulatory framework. He added that Congress must specify which digital assets would be considered securities to streamline the SEC’s regulatory procedures.

Unfortunately, regardless of the political leadership, such legislation is necessary. It ensures that financial products related to cryptocurrencies, like the XRP ETF, continue to be evaluated. The process is crucial for their approval.

Geraci remained hopeful about the long-term prospects for crypto ETFs under a more lenient regulatory framework. However, it is challenging.

Additionally, he pointed out that more regulatory clarity would help the entire sector, not just a single project like XRP. Regulatory changes and the political environment of 2024 will determine the future of XRP ETFs.

Crypto and Equity Are Highlighted in the Harris Campaign

Kamala Harris and Donald Trump are supporting regulation from the political perspective. However, the point is who could do it better.

Chris Larsen is a Ripple co-founder who is in coordination with Kamala Harris. Harris has stated that Larsen has a plan for crypto, which can boost the country’s economy.

Harris recently stated that she was in favor of cryptocurrency. She talked about the need for a regulatory framework to protect and empower Black men who invest in the market for digital assets.

However, she has changed her position from one of more general skepticism toward the current administration. How her policies will impact the crypto ETF approval is still being determined.

The industry’s discussion about the best way to regulate cryptocurrency has intensified as the election draws near.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.