SEC Delays Rulings on Spot Bitcoin ETFs as Approval Chances Remain Uncertain
Summary:
The United States SEC has delayed the rulings on five spot Bitcoin ETF applications, increasing uncertainty about their approval. Bloomberg analysts now raise the probability of an approved spot Bitcoin ETF by the end of 2023 to 75%. Meanwhile, a New York judge dismissed a class-action lawsuit against Uniswap, highlighting the need for policymakers and regulators to engage in good faith rulemaking.
The United States Securities and Exchange Commission (SEC) has postponed the rulings on five spot Bitcoin exchange-traded fund (ETF) applications. The applications were submitted by WisdomTree, Valkyrie, VanEck, Fidelity, and Invesco Galaxy. The SEC has extended the decision-making process, allowing an additional 45 days to consider a proposed rule change that could pave the way for the approval of the first spot Bitcoin ETF.
Following a recent victory by Grayscale against the SEC in court, analysts had previously predicted a 75% chance of a spot Bitcoin ETF being approved by the end of the year. However, the SEC's decision to delay the rulings has added uncertainty to the timeline.
In addition to the mentioned applicants, other firms such as BlackRock, ARK Invest, and Bitwise Asset Management are also competing for a spot Bitcoin ETF listing.
Bloomberg analysts have now raised the probability of an approved spot Bitcoin ETF by the end of 2023 to 75%. The recent Grayscale victory in court played a significant role in increasing the chances. Eric Balchunas, a senior ETF analyst, stated that the SEC's denial of a spot Bitcoin ETF would be politically untenable, given the recent legal and public relations loss.
Republican presidential candidate Vivek Ramaswamy has praised Grayscale's victory, asserting that it will help prevent Bitcoin and blockchain innovation from being driven overseas. Ramaswamy joins Robert Kennedy Jr. and Ron DeSantis as the only presidential candidates who have shown support for the crypto industry.
In a separate case, a New York District judge, Katherine Polk Failla, dismissed a class-action lawsuit against decentralized exchange Uniswap. The judge cited a rare understanding of the decentralized finance (DeFi) marketplace and how it operates. The plaintiffs had accused Uniswap Labs of controlling liquidity pools that included fake tokens launched by scammers. However, the judge ruled that neither the plaintiffs nor the defendants knew the identities of the scammers. The dismissal of the case highlights the need for policymakers and financial regulators to engage in good faith rulemaking.
Please note that this article does not provide investment advice or recommendations. Readers are advised to conduct their own research and assessment before making any investment decisions.
Published At
8/31/2023 8:45:15 PM
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