SEC May Approve 12 Bitcoin ETFs; New Regulations Target Chinese Blockchain Firms & Stablecoins
Summary:
The US Securities and Exchange Commission (SEC) might approve 12 pending Bitcoin ETF applications by November 17, but their actual launch could exceed a month. BlackRock and five other firms are seeking SEC's approval for a spot Ether ETF. Meanwhile, the CLARITY Act of 2023 aims to prevent US officials from dealing with Chinese blockchain firms like iFinex, the issuer of Tether. Additionally, 47 nations are committed to incorporating the Crypto-Asset Reporting Framework into their domestic law systems, with data exchange set to begin by 2027. Lastly, the European Banking Authority has proposed new liquidity and capital rules for stablecoin issuers.
The US Securities and Exchange Commission (SEC) might give the green light to 12 outstanding spot Bitcoin exchange-traded fund (ETF) proposals by November 17. It's been suggested that the SEC has an opportunity window starting November 9, to approve all these filings, which include the conversion of Grayscale Investments' Bitcoin Trust. However, even with SEC's nod on or before November 17, the launch of these products could exceed a month due to the involved two-step process. This process demands sanction from the SEC's Trading and Markets division about the 19b-4 filing and Corporate Finance division concerning the S-1 filing or prospectus. Nine of the applicants have updated their prospectuses, signifying their communication with the Corporate Finance division.
In another development, Nasdaq submitted the 19b-4 form on behalf of BlackRock - a firm managing $9 trillion assets, seeking to launch the iShares Ethereum Trust ETF. Such a move indicates BlackRock's wish to extend their crypto ETF ambitions beyond Bitcoin. They have already registered iShares Ethereum Trust as a corporate entity in Delaware. Besides BlackRock, at least five other companies are aiming for SEC's approval for a spot Ether (ETH) ETF: VanEck, ARK 21Shares, Invesco, Grayscale, and Hashdex.
Meanwhile, the CLARITY Act of 2023, introduced by US Representatives Zach Nunn and Abigail Spanberger, seeks to disallow federal government officials from dealing with Chinese blockchain companies. This legislation, if approved, will prohibit government staff from using Chinese blockchain or crypto trading platforms' underlying networks. Specifically, it will shun U.S. government officials from conducting transactions with iFinex, the company behind Tether's issuance.
On another note, 47 countries have committed to adapting the Crypto-Asset Reporting Framework (CARF) into their national law system promptly. The CARF, initiated by a G20 mandate in April 2021, calls for transaction-type reporting of crypto and digital assets, either via intermediaries or service providers. The declaration's creators hope to implement exchange agreements for data exchanges by 2027.
Lastly, the European Banking Authority (EBA), the EU's banking regulator, has suggested fresh guidelines for stablecoin issuers to establish minimum capital and liquidity stipulations. As per the proposed liquidity rules, issuers must provide a currency-backed stablecoin redeemable at par to investors. In EBA's formal proposal, it mentioned these guidelines as a liquidity stress test for stablecoin issuers, aiming to unearth liquidity deficiencies, allowing approval of only entirely-backed stablecoins with ample liquidity buffer.
Published At
11/13/2023 9:36:00 PM
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