The United States Securities and Exchange Commission (SEC) is expected to approve all 12 pending spot Bitcoin exchange-traded fund (ETF) applications by November 17th. This comes after reports that the SEC has a designated period from November 9th to review and potentially approve these applications. However, even if the approvals are granted within this timeframe, it could still take more than a month before the ETFs are launched. The launch process for an ETF involves a two-step process, requiring approval from both the SEC’s Trading and Markets division and its Corporate Finance division. While nine issuers have already submitted revised prospectuses showing communication with the Corporate Finance division, there is still some time before the products can be fully launched.
Nasdaq has filed a form on behalf of BlackRock, one of the largest asset management firms with over $9 trillion in assets under management, to seek SEC approval for a proposed ETF called the iShares Ethereum Trust. This move indicates BlackRock’s intention to expand its offerings beyond Bitcoin and venture into the world of Ethereum. The firm has already established a corporate entity named iShares Ethereum Trust in Delaware, further solidifying its commitment to the crypto space. In addition to BlackRock, several other firms, including VanEck, ARK 21Shares, Invesco, Grayscale, and Hashdex, are also seeking SEC approval for spot Ether (ETH) ETFs, showcasing the growing interest in cryptocurrencies and blockchain technology.
U.S. Representatives Zach Nunn and Abigail Spanberger have introduced the Creating Legal Accountability for Rogue Innovators and Technology Act of 2023, also known as the CLARITY Act. The legislation aims to prohibit federal government officials from conducting business with Chinese blockchain companies and using the underlying networks of Chinese blockchain or cryptocurrency trading platforms. The act specifically targets government transactions with iFinex, the parent company of USDT issuer Tether, as well. The CLARITY Act reflects ongoing efforts to establish regulatory frameworks and enhance accountability within the rapidly evolving crypto industry.
Forty-seven national governments have collectively pledged to swiftly adopt the Crypto-Asset Reporting Framework (CARF) into their domestic law systems. Developed in response to a mandate from the G20, CARF aims to facilitate the automatic exchange of information between tax authorities regarding cryptocurrency and digital asset transactions. The framework requires reporting on the type of transaction, whether facilitated through an intermediary or a service provider. The signatories of this commitment intend to activate information exchange agreements by 2027, demonstrating a global push for increased transparency and regulation in the crypto market.
The European Banking Authority (EBA), the watchdog for banking activities within the European Union, has put forth new guidelines for stablecoin issuers. The proposed guidelines focus on setting minimum capital and liquidity requirements for stablecoin issuers. According to the EBA, stablecoin issuers must provide a fully redeemable stablecoin backed by a currency at par with investors. The aim of these liquidity guidelines is to subject stablecoin issuers to stress tests that will reveal any potential shortcomings or lack of liquidity within their operations. The EBA’s proactive approach reflects the need for robust oversight and regulation to ensure the stability and long-term viability of stablecoins.
The crypto industry is experiencing significant developments in various areas, including the potential approval of spot Bitcoin ETFs, the expansion of crypto offerings by major asset management firms like BlackRock, regulatory initiatives such as the CLARITY Act, global commitments to enhance transparency through the Crypto-Asset Reporting Framework, and guidelines proposed by the EBA for stablecoin issuers. These developments reflect the growing maturity of the crypto market and the increasing recognition of the need for regulatory frameworks to foster trust and stability in this evolving industry.