SEC Deadlines and Warnings: Upcoming Shifts in the Cryptocurrency Landscape
Summary:
The SEC has set a Dec. 29 deadline for revised spot Bitcoin ETF updates from crypto issuers. Former BitMEX CEO, Arthur Hayes, warns that spot Bitcoin ETFs could destroy Bitcoin if they successfully hoard too many Bitcoins. Paxos has received approval to expand its stablecoin operations to the Solana blockchain. Meanwhile, China's central bank urges global regulation of cryptocurrencies.
The United States Securities and Exchange Commission (SEC) has set a deadline of Dec. 29 for cryptocurrency issuers to provide updated data for their proposed spot Bitcoin ETFs. Failure to meet this timeline could result in exclusion from the first round of potential spot Bitcoin ETF approvals in early January. Meanwhile, Arthur Hayes, former CEO of BitMEX, has expressed his concerns about spot Bitcoin ETFs, predicting a possible catastrophic outcome if too many Bitcoins end up stored in these funds. In other news, Paxos has reportedly received approval to extend its stablecoin operations to the Solana blockchain. Lastly, China's central bank is advocating for a global regulation of cryptocurrency, as per its recent report on financial stability.
For a spot Bitcoin (BTC) ETF to become operational, applicants are required to have their filings ready by the deadline set by the SEC. The commission confirmed that final amendments for all documents should be submitted by Dec. 29. Only applications that meet this deadline will be considered in the inaugural batch of considerations.
Several crypto-related firms met with SEC officials on Dec. 21, with hopes of launching their spot Bitcoin ETFs in early 2024. These included personnel from BlackRock, Grayscale Investments, ARK Investments, and 21 Shares among others.
Arthur Hayes, the former CEO of BitMEX, has warned that spot Bitcoin ETFs could potentially destroy Bitcoin if they turn overly successful. Hayes highlighted in a Dec. 23 blog post that these ETFs are designed to accumulate assets and metaphorically lock them away, thereby reducing Bitcoin's value through movement. In worst-case scenarios, if most or all available Bitcoins end up held in these ETFs, the lack of transactions may cause Bitcoin miners to shut down, leading to the demise of the Bitcoin network.
On another development, Paxos has reportedly obtained a "non-objection" from the New York Department of Financial Services, granting it the permission to extend its USDP stablecoin operations from Ethereum to Solana. Despite the relatively small market capitalization of USDP compared to industry rivals like Tether (USDT) and USD Coin (USDC), Paxos claims to be the most regulated stablecoin issuer worldwide.
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Published At
12/25/2023 4:26:42 PM
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