The evolving crypto-sphere recently witnessed a decision from the U.S. Securities and Exchange Commission (SEC) causing the anticipation to heighten among crypto enthusiasts. The SEC announced that it would need another 45 days to review Bitcoin ETF applications from six out of seven companies, including esteemed names such as Fidelity, WisdomTree, Valkyrie, VanEck, Bitwise, and Invesco. This consequential delay extends the deadline to mid-October and is seen as an ordinary part of the SEC’s process.
The SEC’s commitment to a comprehensive review of the intricate submissions before reaching a final decision is commendable. However, it also reflects the SEC’s cautious approach towards digital assets, casting them under consistent scrutiny before making any significant move.
There is also an air of uncertainty surrounding this regulatory procedure as this is not the first time the SEC decided to delay. Earlier in August, the SEC had postponed its decision on a Bitcoin ETF application from Ark 21Shares, reporting it would request public comments and commenced proceedings for a decision. This pattern of delays indicates a persistent cautious approach by the regulator, grounding the entire process in a procedural labyrinth.
The array of applications waiting in the SEC’s pipeline also includes proposals from BlackRock and Fidelity, owing to responses by the end of this week. Interestingly, the timeline for Bitcoin ETF approvals has been earmarked as becoming increasingly likely between the end of this year and 2024. Especially after a victory by Grayscale Investments over the SEC in a court case, resulting in analysts from Bloomberg Intelligence predicting a significant increase in the approvals by the end of 2023.
That being said, the caution and approach of Gary Gensler, the SEC Chair, have invited criticism from several quarters considering their cold approach to digital assets. Representative Patrick McHenry, a key Republican member of the House Financial Services Committee, called Gensler’s approach overly aggressive. A somewhat contentious figure, Gensler has been pushing crypto firms to register with the SEC, despite there being no clear registration framework.
Although Gensler is scheduled to testify before Congress twice in September, uncertainty lingers around the SEC’s future approach and decisions. An acceptance of a Bitcoin ETF has not occurred yet, and these delays are staying true to the SEC’s cautious approach. The regulator’s strategy to continue to ask for more time to consider the implications of these applications raises many eyebrows. The coming months, thus, hold the promise of setting the future and potential of Bitcoin ETFs – an occurrence that is being closely monitored by crypto-followers worldwide.
Source: Cryptonews
