The United States Securities and Exchange Commission (SEC) has pulled back again on a decision concerning a spot BTC exchange-traded fund (ETF) from ARK 21Shares, extending the review period until January. The decision can be viewed as both a positive and negative for the wider crypto community.
On one hand, by taking its time, the SEC is demonstrating its commitment to thorough due diligence on ARK 21Shares’ offering. The regulators want to be sure that they understand every aspect of the proposed ETF before making a final ruling. This careful approach can give potential investors greater confidence in the outcome, and overall this approach indicates a careful and more precise regulatory framework for emerging asset classes like cryptocurrency.
On the other hand, the delay once again raises questions about when crypto ETF approvals will finally arrive in the US. Despite growing interest in cryptocurrencies and the recent successful court fight by Grayscale Investments, no spot BTC ETF has yet been approved for listing by the SEC.
In a somewhat surprising twist, several members of Congress recently called on SEC chair Gary Gensler to approve spot Bitcoin ETFs without delay. They argue that the SEC is discriminating against spot bitcoin exchange traded products. Essentially, they allege that there’s no justifiable reason to continue rejecting spot crypto ETF applications after the Grayscale court decision, which classified the SEC’s reasoning as “arbitrary and capricious” about approvals tied to Bitcoin futures.
One might argue that a regulated spot bitcoin ETF could provide stronger protection for investors by making access to bitcoin safer and more transparent. But will the SEC’s conservative approach ultimately enable a more solid framework for crypto ETFs, or will it simply impede progress and innovation?
In the balance hangs the future of cryptocurrency regulations, and by absenting definitive and clear guidelines, uncertainty persists. Market players eagerly anticipate the SEC’s final decision, marking January 10, 2023, in their calendars. This date signifies 240 days after the ETF application was lodged, meaning that the SEC has taken the maximum allowable time to reach a decision — symbolic, perhaps, of the delicate, risky, and heavily-scrutinized nature of this revolutionary market.
The discussion about crypto-sphere regulations is far from over, and the crypto community holds its collective breath until then. There is no doubt that decisions like these will set precedence for future regulatory steps and unravel how the digital asset class will evolve in the grand scheme of traditional finance. Each delay, each contemplation and each decision signifies one step forward in the ongoing story of digital currency recognition and integration.
Source: Cointelegraph
