Congressman Tom Emmer (R-Minn.) discusses new legislation to protect Americans’ digital currency privacy when it comes to “making money.”
The Securities and Exchange Commission is close to approving a highly anticipated “spot” Ethereum exchange-traded fund as early as this week, FOX Business reports.
Sources close to the SEC say the SEC and its Chairman Gary Gensler, guided by recent court rulings and previous guidance regarding Ethereum futures ETFs, have ordered nine issuers to sell the world’s second-largest cryptocurrency We have given you permission to offer products to you to track their prices.
SEC Chairman Gensler’s Statement on Spot Bitcoin ETFS
Although approval is not certain, SEC staff is gearing up for the idea of giving these products at least a partial green light as early as Thursday, the SEC’s deadline to decide whether to approve so-called Section 19b. It suggests that. Four applications have been filed by the CBOE exchange seeking to list VanEck and Ark Investments’ Ethereum Spot ETF in partnership with 21 stocks.
In this photo illustration taken on January 9, 2024 in Brussels, Belgium, the United States Securities and Exchange Commission seal is displayed on a smartphone with Bitcoin displayed on the screen in the background. (Photo illustration by Jonathan Raa/NurPhoto via Getty Images / Getty Images)
Approval of the 19b-4 filing is the first in a two-part process in which the SEC must also approve the issuer’s registration statement, known as an S-1, a process that could take several weeks. Yes, which means the ETF may not be officially launched. later this year.
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U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler testifies before the Senate Banking, Housing and Urban Affairs Committee during an oversight hearing at the Capitol on September 15, 2022 in Washington, USA. (Reuters/Evelyn Hochstein/Reuters Photo)
However, SEC approval would be another significant development in the maturation of the $2 trillion cryptocurrency industry.
Many have given up hope that the SEC will smile on the Ethereum Spot ETF, given the lack of engagement with the filing and the uncertainty surrounding the Commission’s thinking regarding Ethereum’s status as a potential security. I did.
But the SEC on Monday began actively engaging with issuers and national exchanges ahead of Thursday’s deadline, before approving 11 ETFs to track the daily price of Bitcoin in January. That’s what happened.
Live prices of cryptocurrencies: here
The SEC, through a spokesman, declined to comment.
Potential ETF issuers, who spoke on condition of anonymity, told FOX Business they were surprised by what appeared to be a sudden change of heart by regulators.
Many industry observers attribute the SEC’s sudden involvement to growing bipartisan support for the digital asset industry from Congress and former President Trump, who has said he would support the use of cryptocurrencies if elected and would end the Biden administration’s regulatory “hostility” towards the industry.
On Tuesday, the Trump campaign updated its website to accept donations in cryptocurrency.
Still, people familiar with Gensler’s thinking say Gensler has made a number of decisions, including a court ruling over crypto asset manager Grayscale and the commission’s previous green light for an Ethereum futures ETF, which hit the market in October. The company is also looking at other factors.
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Last summer, a federal appeals court rejected the SEC’s decision denying Grayscale’s motion to convert its GBTC Bitcoin Trust into a spot ETF, and Grayscale said the Bitcoin Spot ETF had not been traded since. He said he was unable to make a convincing argument that it was materially different from futures ETFs. 2021. Grayscale ruling lays the foundation for the rollout of a Bitcoin Spot ETF, and potentially an Ethereum Spot ETF in the future.
According to documents filed by the issuer today, the main sticking point for the SEC to approve an Ethereum Spot ETF appears to be so-called “staking,” which allows investors to earn passive income by staking Ethereum as collateral and earning returns. In ETF form, investors could potentially receive larger returns as opposed to what they might receive with an ETF that only tracks the daily price of Ethereum.
Poland – 04/02/2024: In this photo illustration, the logo of the United States Securities and Exchange Commission (SEC) is displayed on a smartphone with stock market percentages in the background. (Photo illustration by Omar Marques/SOPA Images/LightRocket via Getty Images (Getty/Getty Images)
The SEC said this staking could potentially make any Ethereum issued after “Ethereum 2.0,” or the blockchain’s integration into a so-called “proof-of-stake” consensus mechanism in 2022, qualify as a security. I think there is.
Indeed, even though the SEC approved an Ethereum ETF without a staking component on Thursday, the fact that Ethereum issued on today’s proof-of-stake networks may still be a security in the eyes of the commission This is not to deny it. FOX Business reported in April that the SEC’s Enforcement Division has been investigating Ethereum, its merger, and the companies and individuals associated with it for at least a year.
Although the SEC maintains that outside political factors are not at play, there is no doubt that cryptocurrencies have become an increasingly politicized issue in recent weeks.
Spot Bitcoin ETFS: How to invest and what it means
The Biden administration, including Senate Democrats such as Majority Leader Chuck Schumer (D-NY), appears concerned that Republicans and presumptive Republican presidential nominee Donald Trump could capitalize on the growing popularity of digital assets, especially among younger voters, by using the administration’s policies to crack down on cryptocurrencies to win votes and take the White House and possibly the Senate.
FILE PHOTO: In this illustration taken on June 29, 2021, representations of the cryptocurrencies Bitcoin, Ethereum and Dogecoin are placed on a PC motherboard. (Reuters/Dado Ruvik/File Photo/Reuters Photo)
Last week, Schumer led a group of 12 Democratic senators to vote in favor of repealing a controversial SEC rule that limits the ability of crypto companies to have fair access to the banking system. The 60-38 vote in favor of repeal is a landmark moment for an industry that has until recently been battling Democrats who have shown unwavering support for Gensler and his regulatory crackdown on cryptocurrencies. was widely regarded as
The House of Representatives is scheduled to vote on Wednesday on a first-of-its-kind bill that would establish a comprehensive regulatory framework for digital assets and a foundation for transparency for cryptocurrency companies and investors.
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