June 18, 2024
EU Elections Impact on MiCA and Ether ETF
Latest Cryptocurrency News

EU Elections Impact on MiCA and Ether ETF

The upcoming EU elections from June 6 to June 9 could be pivotal for crypto regulations and the approval of spot Ether exchange-traded funds (ETFs). According to Jag Kooner, head of derivatives at Bitfinex, these elections could be a “wildcard” moment for shaping future crypto policies. Kooner Said:

“The elections could see a major shift in the political landscape, 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.”

European Elections heatmap. Source: European Commission

Kooner said that right-wing parties are expected to gain more influence in the EU Elections in 2024. Marina Markezic, co-founder and executive director of the European Crypto Initiative (EUCI), stated that more right-wing parties might introduce protective measures for the crypto industry.

“The right-wing trend will likely leave its mark on the Commission’s activities, including the expected portfolios of the upcoming Commissioners, which might present more visible protectionist tendencies.”

However, these parties could also become allies for innovation-friendly crypto regulations, added Markezic.

“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 the crypto advocacy topics in Brussels and Strasbourg.”

Influence on MiCA and Crypto Regulation

The outcome of the elections could significantly impact the implementation of the Markets in Crypto-Assets (MiCA) bill, the first comprehensive regulatory framework for cryptocurrencies in the EU, set to take full effect in December 2024. Despite the potential for more conservative crypto regulatory policies, spot Ether (ETH) ETFs are gaining traction with European financial institutions.

Following the U.S. Securities and Exchange Commission (SEC) approval of the 19b-4 filings for eight spot Ether ETF issuers on May 23, these ETFs are now listed and traded on their respective exchanges. This decision has increased confidence among European financial institutions regarding Ether ETFs, according to Kooner. He told in an interview that the clarity provided by the MiCA bill is encouraging some of Europe’s largest banks to move into the crypto space.

“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. This move sets a strong precedent for the EU, where the regulatory framework provided by the MiCA regulation could facilitate similar approvals.”

Growing Institutional Interest in Crypto

In April, Germany’s largest federal bank, the Landesbank Baden-Württemberg (LBBW), announced it would start offering crypto custody services to institutional clients in the second half of the year. At the end of April, Raiffeisen, Austria’s largest community banking group, partnered with Bitpanda to offer digital asset services to retail banking customers.

These developments highlight a growing interest in cryptocurrencies among major European financial institutions, driven by regulatory clarity and the evolving legislative landscape. The EU elections and subsequent regulatory decisions could further shape the future of crypto in Europe, influencing both the market and institutional involvement in digital assets.

Image by OpenClipart-Vectors from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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