Ripple Legal Expert Analyzes SEC Strategies in the Bitcoin ETF Approval Process

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The SEC is gearing up for potential approvals of the first spot Bitcoin (BTC) exchange-traded funds (ETFs), signaling a looming launch. Reports reveal the SEC’s directive to companies with spot BTC ETF applications: they must submit all amendments by December 29 to be considered in the initial approval wave.

In discussions with at least seven companies, including notable names like BlackRock, Grayscale Investments, ARK Invest, and 21 Shares, the SEC urged two to finalize changes by week’s end. Representatives from Nasdaq and Cboe, the planned trading platforms for these ETFs, were also engaged in these discussions with the SEC.

Legal Expert’s Insights: SEC’s Strategic Balancing Act

Speaking on this sudden change in the SEC’s plan, Fred Rispoli, a notable figure in the legal aspect of cryptocurrencies, offers insights into the SEC’s strategies. His observations hint at a careful balancing act by the SEC—navigating between satisfying major financial entities’ demands and avoiding potential legal entanglements—which might contribute to a deliberate delay in approving the ETF.

Grayscale and Hashdex: Adapting to SEC’s Stipulations

On a parallel track, Grayscale, a significant player in crypto investments, is adjusting its filing. They aim to convert their Bitcoin Investment Trust into a spot Bitcoin ETF by adapting to the SEC’s stipulations. Hashdex, another player, has engaged in direct conversations with the SEC, including a meeting with Chairman Gensler. These discussions underscore the gravity and intricacies of the ongoing negotiations, revealing a complex interplay of interests and strategies within the crypto regulatory space.

As 2024 draws near, these negotiations hold significant implications for the regulatory landscape of the crypto market. They paint a vivid picture of calculated maneuvers and strategic talks, shaping the future dynamics and regulations of the crypto sphere.

Jan 10th Approval or Delay? 

On the flip side, John Reed Stark, a prominent figure in discussions regarding crypto-spot ETFs, previously voiced his skepticism about approving Bitcoin (BTC)-spot ETFs by the Securities and Exchange Commission (SEC) in August. He expressed a belief that the SEC would likely disapprove of such ETFs. However, Stark also indicated that the possibility of crypto-spot ETFs becoming a reality could increase after the US Presidential Election.

Stark and several others in the industry anticipated that a Republican victory in the US Presidential Election would positively impact the digital asset space in the United States. It’s essential to note that Stark shared these opinions before Grayscale’s successful appeal, which could potentially alter or influence the dynamics and decisions related to the ETF market.