The U.S. Securities and Exchange Commission (SEC) might greenlight all 12 pending applications for spot Bitcoin exchange-traded funds (ETFs) by November 17. Reports indicate a "window" from November 9 onwards for the SEC to potentially approve these filings, including Grayscale Investments’ plan to transform its Grayscale Bitcoin Trust into an ETF. Despite the expected approval, the actual launch of these ETFs might encounter a delay of more than a month following SEC approval. This delay stems from the intricate two-step process required to launch an ETF, involving SEC’s Division of Trading and Markets' 19b-4 filing approval and approval of the S-1 filing or prospectus from the issuer’s finance department. Nine out of the 12 Bitcoin ETF applicants have updated their prospectuses, indicating communication with corporate finance departments.
In another development, Nasdaq filed a Form 19b-4 on behalf of asset manager BlackRock, seeking approval for its proposed ETF, iShares Ethereum Trust. This move signals BlackRock's intent to expand its crypto ETF scope beyond Bitcoin. The establishment of the iShares Ethereum Trust as a corporate entity in Delaware highlights BlackRock’s foray into Ethereum-based ETFs. Furthermore, at least five other entities, including VanEck, ARK 21Shares, Invesco, Grayscale, and Hashdex, are seeking SEC approval for Ethereum spot ETFs.
U.S. Representatives Zach Nunn and Abigail Spanberger have co-sponsored the Holding Rogue Innovators and Technologies Accountable Act of 2023, aiming to restrict federal government officials from engaging in business with Chinese blockchain companies. The proposed bill would bar government employees from using Chinese blockchain or cryptocurrency platforms' underlying networks and forbid officials from transacting with iFinex, the parent company of USDT issuer Tether. In global efforts, 47 governments have pledged to incorporate the Crypto-Asset Reporting Framework (CARF), an international standard for automatic exchange of information between tax authorities, into their domestic legal systems by 2027, as per the G20 mandate of April 2021.
Meanwhile, the European Banking Authority (EBA), the EU’s banking regulator, has introduced new guidelines for stablecoin issuers. These guidelines propose setting minimum capital and liquidity requirements for stablecoins. The suggested liquidity guidelines necessitate that stablecoin issuers provide full redemption at face value for any stablecoin backed by a currency. The EBA’s proposal positions the Stablecoin Liquidity Guidelines as a stress test for stablecoin issuers, aiming to highlight liquidity shortcomings and ensure approval for only fully-backed stablecoins with sufficient liquidity buffers.
