The fate of the highly anticipated spot Bitcoin Exchange-Traded Fund (ETF) approval could be influenced by a significant procedural aspect of the U.S. Securities and Exchange Commission (SEC). Fox Reporter Eleanor Terrett recently shed light on this aspect, which has caught the attention of the crypto community.
According to Terrett, although there is no scheduled commission vote on the Bitcoin ETF, each of the five SEC commissioners has the right to request a review and a full commission vote. This procedural nuance has the potential to delay the approval of the spot Bitcoin ETF, leaving crypto enthusiasts eagerly awaiting a decision.
Terrett’s revelation came in response to a tweet by Anne Kelley, highlighting 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. It serves as one of the few tools available to non-chair commissioners to enhance transparency in the SEC’s decision-making process.
Eric Balchunas, a senior Bloomberg ETF analyst, expressed confidence in the approval process under the direction of SEC Chair Gensler. Balchunas suggested that the staff’s diligent work with issuers indicated a plan for approval and advised against complicating the situation further. Balchunas’ perspective adds a sense of optimism amid the uncertainty surrounding the approval of the spot Bitcoin ETF.
The discussion sparked by Terrett’s tweet continued with Justin Slaughter, policy director at Paradigm, highlighting the SEC’s ability to vote on matters without a formal meeting through the “seriatim” process. This raised questions about whether a commissioner might request a full commission vote, potentially adding more time to the approval process. The outcome of these deliberations remains uncertain as the January 10 deadline approaches.
An Extended Approval Process?
Terrett, previously expressing skepticism about an imminent spot Bitcoin ETF approval, cited vacations and work overload at the SEC. Comparing the situation to the Ethereum futures approval in October 2023, she suggested a similar timeline for the spot Bitcoin ETF. This implies that the process might extend beyond the immediate deadline, leaving market participants in suspense.
In addition to the procedural considerations, Terrett revealed that the SEC, alongside major exchanges such as Nasdaq, CBOE, and NYSE, were holding meetings regarding the spot Bitcoin ETF applications. These meetings provide issuers with an opportunity to address any shortcomings in their applications and potentially move closer to approval. However, with the deadline looming, the outcome of these discussions and the SEC’s final decision remain uncertain.
The procedural aspect of the SEC has introduced an unexpected hurdle in the approval process for the spot Bitcoin ETF. The ability of each SEC commissioner to request a review and a full commission vote has the potential to delay the decision further. While analysts like Eric Balchunas express confidence in the process, the uncertainty surrounding the outcome and the approaching deadline leave the crypto community anxious for a resolution. As meetings between the SEC and major exchanges continue, market participants eagerly await a final decision on the spot Bitcoin ETF.