In the world of cryptocurrency today, several significant developments emerged. First, banking giant JPMorgan has projected that the approval of spot Solana (SOL) and XRP (XRP) exchange-traded funds (ETFs) could attract billions in new investment. These emerging cryptocurrency-based products are anticipated to have considerable impact, should a more innovation-friendly regulatory environment emerge post-inauguration of President-elect Donald Trump. JPMorgan’s report estimates SOL could attract between $3 billion to $6 billion, and XRP could gather $4 billion to $8 billion in net new assets. Notably, these projections follow the first anniversary of the U.S. spot Bitcoin ETFs, which have amassed nearly $110 billion in cumulative holdings.
Meanwhile, U.S. Senator Elizabeth Warren addressed an open letter to Scott Bessent, President-elect Donald Trump’s Treasury Secretary pick. Warren questioned whether stricter measures are needed in the crypto sector to prevent money laundering and terror financing. She emphasized the increasing use of cryptocurrencies in activities linked to national security threats, including conflicts involving Russia and North Korea, as well as China’s military sales. Warren proposed that the Treasury Department might need enhanced authority to impose secondary sanctions that could sever financial ties with non-compliant crypto operators.
In another development, Tether announced its intention to relocate its corporate headquarters to El Salvador after obtaining a digital asset service provider license there. The company hailed El Salvador’s innovative regulatory environment and growing familiarity with Bitcoin as reasons for the move. This decision aligns with steps taken by Tether’s CEO, Paolo Ardoino, and COO, Claudia Lagorio, who have also become naturalized citizens of El Salvador.