SEC Expected to Approve All 12 Pending Spot Bitcoin ETFs
The United States Securities and Exchange Commission (SEC) is anticipated to approve all 12 pending spot Bitcoin exchange-traded fund (ETF) applications by Nov. 17. This comes after the SEC reportedly has a “window” starting on Nov. 9 to approve these applications, including Grayscale Investments’ conversion of its Grayscale Bitcoin Trust product.
Even if the SEC approves spot Bitcoin (BTC) ETFs by Nov. 17, there could be a delay of more than a month before the products actually launch. The delay is expected due to the two-step process required for launching an ETF. Issuers must obtain approval from the SEC’s Trading and Markets division on their 19b-4 filing and its Corporate Finance division on the S-1 filing or prospectus. Nine out of the 12 Bitcoin ETF applications have submitted revised prospectuses indicating communication with the Corporate Finance division.
Nasdaq has filed the 19b-4 form for BlackRock’s proposed iShares Ethereum Trust, signaling an expansion beyond Bitcoin for BlackRock’s crypto ETF aspirations. Additionally, five other firms are seeking SEC approval for a spot Ether (ETH) ETF: VanEck, ARK 21Shares, Invesco, Grayscale, and Hashdex.
CLARITY Act Affects U.S. Officials’ Engagement with Tether’s Parent Company
U.S. Representatives Zach Nunn and Abigail Spanberger introduced the Creating Legal Accountability for Rogue Innovators and Technology Act of 2023 — or the CLARITY Act of 2023 — aiming to prohibit federal government officials from conducting business with Chinese blockchain companies. The act would also forbid U.S. government officials from engaging in transactions with iFinex, the parent company of USDT issuer Tether.
Forty-seven Countries Commit to Exchanging Crypto Tax Data
Forty-seven national governments have pledged to swiftly implement the Crypto-Asset Reporting Framework (CARF) into their domestic law systems by 2027. Developed from a G20 mandate in April 2021, CARF requires reporting on cryptocurrency and digital asset transactions through intermediaries or service providers. The goal is to activate exchange agreements for information exchanges to commence by 2027.
European Banking Authority Proposes Guidelines for Stablecoin Issuers
The European Banking Authority (EBA) has put forth new guidelines for stablecoin issuers to establish minimum capital and liquidity requirements. Under these proposed guidelines, stablecoin issuers must offer fully redeemable stablecoins backed by a currency at par to investors. The EBA aims to use stress tests to ensure only fully-backed stablecoins with adequate liquidity are approved.
Hot Take: Anticipating Approval and Regulation
The anticipation of SEC approval for Bitcoin and Ether ETFs is causing excitement in the crypto space as it signals potential growth and mainstream acceptance of these assets. However, regulatory actions such as the CLARITY Act and international tax data exchanges are also indicative of increasing scrutiny and oversight within the industry.
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