Bloomberg analysts said that the US SEC agency may approve the Bitcoin spot ETFs applications from next year.
US Securities and Exchange Commission (SEC) is responsible for the regulation of the spot Money market in the United States. The SEC agency is also responsible for regulation of the crypto market but due to the initial phase of this industry, the agency showed some rude nature to the regulation system. However, steps by the SEC are efforts to provide security to the people from any kind of illegal activities or any type of manipulation related to cryptocurrencies, which are decentralized in nature.
On 24 March, two exchange-traded funds (EFT) analysts of Bloomberg, Eric Balchunas and James Seyffart noted that proposed changed rules with the SEC agency may act as a push for the agency to approve the applications of Bitcoin spot ETFs.
Through the tweet, Eric noted that if the SEC agency will give green light to the proposed amendment to bring changes in the definition of “exchange”, which was proposed in January of this year, then in that situation the SEC agency will consider crypto exchanges under the regulatory framework of the SEC.
According to the proposed change in amendment “Exchange Act to include platforms that make available for trading any type of security — seemingly including cryptocurrencies, making their investment vehicles more palatable for the regulator.
In this way, analysts claimed that if crypto exchanges will remain under the existing legal rules compliance then there will be no rejection reason to the Bitcoin spot ETFs.
“Once crypto exchanges are compliant, the SEC’s primary reason for denying Bitcoin spot ETFs would no longer be valid, likely clearing the way for approval.”
Both the analysts noted that the definition of “exchanges,” in the Exchange Act of SEC framework will be introduced in November of this year to May of next year. So by the mid of next year, there are huge chances for the approval of crypto spot ETFs applications.
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