Bad news for the blockchain industry: recently, the SEC officially postponed its decision on Cathie Wood’s Ark Invest’s proposed Bitcoin ETF.
Let’s see below all the details and what this may mean in the crypto field.
Summary
SEC on Ark Invest’s Bitcoin ETF: latest updates
As anticipated, the federal Securities and Exchange Commission (SEC) agency officially announced a delay in its decision regarding the Bitcoin ETF proposed by ARK Invest, an investment company founded by Cathie Wood.Â
As we know, this decision had been widely expected by the cryptocurrency industry and investors, but now a further slippage in the timeline is on the horizon.
ARK Invest’s Bitcoin ETF has received significant attention, as it would have been an important step in the adoption of cryptocurrencies by institutional investors.
However, the SEC has requested further reviews and announced that its final decision will be delayed.
This news could affect the performance of cryptocurrency markets and investors’ expectations. Not surprisingly, many are now wondering what the impact of this delay will be and when we can expect a final decision from the SEC.
Some lawmakers ask SEC to reconsider its stance on Bitcoin ETFs
Recently, a bipartisan group of lawmakers sent a letter to the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, asking the agency to reconsider its position on the approval of Bitcoin exchange-traded funds (ETFs).Â
The letter was sent shortly before Gensler’s hearing before the House of Representatives’ Financial Services Committee. The four committee members argued that a spot bitcoin ETF is “indistinguishable” from cryptocurrency futures-based ETFs already approved by the SEC.
Therefore, they requested that the agency grant approval to would-be ETFs, including Fidelity, BlackRock’s iShares, and Grayscale Investments, an affiliate of Digital Currency Group, parent company of CoinDesk.
In the letter, the representatives said the SEC’s current position is untenable after a Court of Appeals decision, and pointed out inconsistency and discrimination in the agency’s approval criteria.
In addition, last month, a judge in the D.C. Circuit Court of Appeals ordered the SEC to reconsider its position on these claims. US District Judge Neomi Rao found that the agency’s earlier rejection in Grayscale’s case had been “arbitrary and capricious.”
Members of Congress urged the SEC to make immediate decisions on the outstanding requests. Gensler will appear at an SEC oversight hearing in committee this week, where members will have an opportunity to question the issue.
The introduction of a bitcoin ETF could greatly simplify investors’ access to the cryptocurrency market, as ETFs are designed to be trading instruments easily accessible through brokerage accounts.
Note that Emmer, Flood and Torres are members of the Congressional Blockchain Caucus in the House, while Emmer also holds a leadership role as majority whip.
BitGo CEO unveils the political side of Bitcoin ETF approval
Recently, the CEO of cryptocurrency exchange BitGo, Mike Belshe, shared his views on why the U.S. Securities and Exchange Commission (SEC) has not yet approved a Bitcoin (BTC)-based exchange-traded fund (ETF).
In a recent interview with Kitco News, Belshe suggested that politics plays a significant role in the current lack of a spot-based Bitcoin ETF in the United States. He also pointed out that this issue is more political than legal, which makes it difficult to predict when or if an ETF will be approved.
Belshe highlighted the influence of political figures in Washington on the situation, citing the example of Senator Elizabeth Warren who publicly supported the implementation of stricter regulations for cryptocurrencies during the Biden administration.
He went on to say that this political influence is having a significant impact on the actions of the SEC and the Biden administration, despite the fact that the underlying laws remain unchanged.
According to Belshe, it is critical to have “predictable and understandable” rules to maintain US economic competitiveness and the role of the US dollar as a global reserve currency.
Finally, he stressed the need for legislation that establishes clear and accessible regulation for all, a concept that should unite both Democrats and Republicans.
