Last updated March 25, 2022
Bloomberg analysts said the US SEC could approve Bitcoin spot ETFs applications starting next year.
The United States Securities and Exchange Commission (SEC) is responsible for regulating the cash market in the United States. The SEC agency is also responsible for regulating the crypto market, but due to the early stages of this industry, the agency showed rudeness to the regulatory system. However, the SEC’s steps are efforts to protect the people from any kind of illegal activity or any kind of manipulation related to cryptocurrencies, which are decentralized in nature.
On March 24, two exchange-traded funds (EFT) analysts from Bloomberg, Eric Balchunas and James Seyffart, noted that proposed rule changes with the SEC could provide a boost for the agency to allow Bitcoin spot applications. – Approve ETFs.
Through the tweet, Eric noted that if the SEC bureau will give the green light to the proposed change to make changes to the definition of “exchange,” which was proposed in January of this year, the SEC bureau in that situation will hold crypto. exchanges under the SEC’s regulatory framework.
New note on why we think spot bitcoin ETFs will be approved in early summer 2023. The SEC is proposing to expand the definition of “exchange”, allowing crypto platforms under SEC reg. Then search (which can take a year) for ETFs to get the green light via @JSeyff pic.twitter.com/TtFgFXrJ8h
— Eric Balchunas (@EricBalchunas) March 24, 2022
Under the proposed change in amendment “Exchange Act to include platforms that make available every type of security – seemingly including cryptocurrencies, making their investment vehicles more pleasing to the regulator.
In this way, analysts claimed that if crypto exchanges continue to comply under the existing legal rules, there will be no reason to reject the Bitcoin spot ETFs.
“Once crypto exchanges are compliant, the SEC’s main reason for refusing Bitcoin spot ETFs would no longer be valid, likely paving the way for approval.”
Both analysts noted that the definition of “exchanges” in the Exchange Act or SEC framework will be introduced from November this year to May next year. So by the middle of next year, there is a huge opportunity for the adoption of crypto spot ETFs applications.
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