The approval of spot Bitcoin Exchange-Traded Funds (ETFs) has been a topic of anticipation within the cryptocurrency community. A recent revelation by Fox reporter Eleanor Terrett has shed light on a procedural aspect of the U.S. Securities and Exchange Commission (SEC) that may influence the fate of these ETFs.
According to Terrett’s tweet on January 9th, each of the five SEC commissioners retains the right to request a review and a full commission vote, even without a scheduled vote on the Bitcoin ETF. This procedural nuance has the potential to introduce delays in the approval process, much to the disappointment of the crypto community.
The tweet by Terrett was a response to a tweet by Anne Kelley, which highlighted a little-known clause, 17 C.F.R. Section 201.431. This clause empowers any single SEC commissioner to require the full Commission to review a matter that was previously approved via staff-delegated authority.
The inclusion of this clause in the SEC’s regulations serves as a tool for non-chair commissioners to enhance transparency in the decision-making process. By allowing any commissioner to call for a full commission vote, it ensures that important matters receive the attention they deserve.
The procedural aspect brought to light by Terrett has sparked discussions among experts in the field. Eric Balchunas, a senior Bloomberg ETF analyst, expressed confidence in the approval process under SEC Chair Gensler’s direction. He suggested that the staff’s diligent work with issuers indicated a plan for approval and advised against over-complicating the situation.
However, it is important to consider the diverse perspectives within the crypto community. Justin Slaughter, policy director at Paradigm, pointed out the SEC’s ability to vote on matters without a formal meeting through the “seriatim” process. This means that decisions can be made individually and without the need for a collective discussion among the commissioners.
While the procedural nuances within the SEC’s voting process add an extra layer of complexity, they also have the potential to delay the approval of spot Bitcoin ETFs. Terrett had previously expressed skepticism about an imminent approval, citing vacations and work overload at the SEC. This raises concerns about the ability of the SEC to make a timely decision.
Terrett also mentioned in a separate tweet that the SEC was engaging in meetings with major exchanges such as Nasdaq, CBOE, and NYSE regarding the spot Bitcoin ETF applications. These meetings provide issuers with the opportunity to address any shortcomings in their applications and bring them closer to approval.
However, with the January 10 deadline approaching, the outcome of these meetings and the SEC’s final decision remain uncertain. The potential for a commissioner to request a full commission vote under the identified procedural nuance in the regulations adds an element of unpredictability to the approval process.
The procedural aspect of the SEC’s review and voting process for spot Bitcoin ETFs has raised questions and concerns within the crypto community. While some experts express confidence in the approval process, others highlight the potential for delays and complications.
As the SEC continues to navigate the landscape of cryptocurrency regulation, it is essential for stakeholders to stay informed about these procedural nuances and their potential impact on the approval of spot Bitcoin ETFs. Only time will tell how these factors will shape the future of cryptocurrency investment opportunities.
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