SEC Commissioner Advocates for Bitcoin ETF: Why the Halt?

• SEC Commissioner's Views on Spot Bitcoin ETFs
• On-going Discussions on Spot Bitcoin ETF Applications
• Individual Assessment of Applications
• Grayscale's Application and Others
• The Timing of the Discussion

SEC Commissioner's Views on Spot Bitcoin ETFs

Based on a recent dialogue with Bloomberg, the U.S. Securities and Exchange Commission (SEC) Commissioner, Hester Peirce, expressed that the SEC doesn't have any compelling reason to obstruct the establishment of a spot Bitcoin$42,260 -0.64% ETF. Peirce chose not to disclose any information about the possible endorsement of a spot bitcoin exchange-traded fund (ETF).

On-going Discussions on Spot Bitcoin ETF Applications

When questioned about the reported ongoing discussions between ETF issuers and SEC officials concerning spot bitcoin ETF applications, Commissioner Peirce responded in a reserved manner, refraining from commenting on the matter. Peirce highlighted that each Spot Bitcoin ETF application merits an individual assessment.

Individual Assessment of Applications

Peirce maintained that while each application is evaluated individually, she did not identify any plausible reasons to reject some of the applications previously presented to the SEC. She added, We received a slight push from the court. It'll be interesting to see what transpires moving forward. This push appears to reference a recent court ruling in a case involving Grayscale, wherein the judge deemed the SEC's denial of Grayscale's application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF as arbitrary and capricious.

Grayscale's Application and Others

When approached with a question regarding whether Grayscale's application could be resolved prior to other spot bitcoin ETF submissions, Peirce chose not to speculate. She highlighted that all the applications are currently under review and specific timelines cannot be provided.

The Timing of the Discussion

This discussion took place only a day after the indictment of the former CEO of Binance, Changpeng Zhao, who faces accusations of assisting in money laundering and sanctions violations. Zhao has since resigned from his position. This sequence of events implies that the regulation of digital assets remains a significant concern for U.S. authorities.

Edited by Jonathan Stoker