Ethereum rises 18% and Sen. Elizabeth Warren sinks in latest D.C. crypto drama

Crypto markets were rocked on Monday by news that the Securities and Exchange Commission has gone back to Ethereum ETF issuers and asked them to update their filings. The move was widely interpreted as a signal that the agency was suddenly shying away from its widely anticipated plan to reject ETFs. In contrast, Ethereum rose from around $3,100 to over $3,700 by midnight; This resulted in a gain of almost 20%, resulting in an increase in crypto prices overall.

Reports of the new application request come three days before the SEC faces a deadline to approve or deny an Ethereum ETF application from VanEck, one of 11 companies that launched a first-of-its-kind ETF for Bitcoin in January. These Bitcoin ETFs have sparked a speculative frenzy that has propelled the currency to all-time highs, and markets appear to be betting that the good times will begin again, this time with Ethereum leading the pack.

To be clear, SEC approval is far from a sure thing, and in any case, this week’s VanEck decision relates only to a request to change agency rules to allow for an Ethereum ETF; Even if the application is approved, VanEck and others will have to do so. Wait weeks or months for the SEC to sign off on corporate paperwork. But given what’s happened in the last few days, it’s easy to forgive the crypto community for feeling optimistic and a little giddy.

For starters, Monday saw the Chairman of the FDIC, a powerful crypto rival, resign following a scandal over a culture of toxicity and sexual harassment at the agency. Meanwhile, crypto supporters are still rejoicing after a dozen Democrats in the Senate, including Majority Leader Charles Schumer, went against their own party’s position and voted for a bill that would make it easier for banks to hold cryptocurrencies. While President Joe Biden previously said he would veto the bill, not everyone is sure after the Senate vote and the realization that cryptocurrency is more popular in his party than people once thought.

If pro-crypto forces are the clear winner of this surprising series of developments in Washington, D.C., there is also a clear loser: Sen. Elizabeth Warren (D-Mass.). The Bay State’s senior senator is not only the leader of his party’s progressive wing, but he has long enjoyed an agreement with the president that allows him to dictate broad swaths of financial policy, including fierce opposition to crypto. But last week’s Senate vote on the crypto bill shows his grip on policy is weakening. She also lost an important ally with the resignation of the head of the FDIC, whose job she was fighting to save. Warren’s influence in her party is waning.

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Or, if you prefer a shorter version of all this drama in DC, we can summarize the week as, as one of my crypto bros puts it, “long Ethereum, short Warren.”

Jeff John Roberts
[email protected]
@jeffjohnroberts

This story first appeared on Fortune.com