Big News for Bitcoin ETFs
The U.S. Securities and Exchange Commission (SEC) is gearing up for a potentially historic moment. By November 17, it could give the green light to all 12 pending spot Bitcoin exchange-traded fund (ETF) applications. Mark your calendars, folks! The window opens on November 9 for the SEC to approve these filings, including Grayscale Investments’ much-anticipated transformation of its Bitcoin Trust product.
Launch Delays Expected
But hold your horses! Even if the big approval comes by the 17th, investors may need to practice their patience. Why? Because launching an ETF isn’t as simple as popping a piñata at a birthday party. It involves a multi-step process that takes time. Each ETF requires two key approvals from the SEC: one from the Trading and Markets division regarding the 19b-4 filing and another from the Corporate Finance division for the S-1 filing (a.k.a., the prospectus).
As it stands, nine of the twelve ETF applications have already sent revised prospectuses to say, “Hey, we’ve talked to the Corporate Finance folks!”
BlackRock’s Foray into Ethereum
In other news, Nasdaq has thrown its hat into the ring by filing the 19b-4 form on behalf of BlackRock for a proposed ETF—the iShares Ethereum Trust. It seems BlackRock isn’t content just playing with Bitcoin and has decided to expand its crypto aspirations to Ethereum as well. They’ve even secured a corporate trust identity in Delaware. But they’re not alone—five other firms are also batting for a spot Ether (ETH) ETF, including some big names like VanEck and ARK 21Shares.
Legislation to Limit Government Interactions
Shifting gears, we have some legislative news that could send a chill through the crypto community. Representatives Zach Nunn and Abigail Spanberger have introduced the CLARITY Act of 2023, which intends to cut off federal officials from dealing with Chinese blockchain firms. The act doesn’t just stop at preventing interaction—it outright forbids U.S. government employees from transacting through the underlying networks of Chinese crypto trading platforms. So much for government friendly chats!
A Global Shift Towards Crypto Tax Frameworks
And speaking of global trends, forty-seven countries have pledged to start exchanging crypto tax data come 2027. Under a newfound framework called the Crypto-Asset Reporting Framework (CARF), these countries plan to push for automatic exchanges between tax authorities. If you thought tax season was stressful before, just wait until 2027; governments will want to know everything—from the type of cryptocurrency to who you traded it with!
European Banking Authority and Stablecoin Regulations
Lastly, let’s talk stablecoins. The European Banking Authority (EBA), serious about its role as the EU’s banking watchdog, has proposed guidelines that would establish minimum capital and liquidity requirements for stablecoin issuers. One of their suggestions includes the need for any stablecoin to be fully redeemable at par for investors. Think of it as a stress test that highlights any weaknesses in liquidity. Nobody wants a stablecoin that’s about as stable as a shaking table at a family dinner.
