Approving a spot Bitcoin (BTC) alternate-traded fund (ETF) is a chance for the US Securities and Exchange Commission (SEC) to “bring crypto into line,” a Bloomberg editorial piece has argued.
Published on Wednesday, the editorial piece adopted a court docket ruling that rejected the SEC’s resolution to disclaim Grayscale Investments to transform its Grayscale Bitcoin Trust (GBTC) right into a spot ETF, making the difficulty related as soon as once more.
The editorial instructed that the SEC ought to now approve spot Bitcoin ETFs, supplied that the crypto exchanges concerned meet the identical requirements as their regulated counterparts within the conventional finance trade.
This strategy would create consistency within the guidelines and encourage main ETF sponsors like BlackRock and Fidelity to watch compliance, the Bloomberg editors argued within the piece that was additionally shared on X by Bloomberg Intelligence’s ETF analysts Eric Balchunas and James Seyffart:
Approving spot ETF a path to manage crypto
The piece additional argued that approval of spot Bitcoin ETFs may assist deal with the problem of regulating Bitcoin and different digital tokens.
It famous that Bitcoin is taken into account a commodity for regulatory functions, and due to this fact and falls below the jurisdiction of the Commodity Futures Trading Commission (CFTC), however solely within the context of futures buying and selling.
If the functions for spot Bitcoin ETFs that at the moment are on the SEC’s desk had been permitted, it could set up constant requirements throughout the crypto trade, together with for the cryptocurrencies that do not essentially match the standard classes, the piece stated.
It added that this may be executed with out undermining the SEC’s enforcement of securities legal guidelines.
The SEC ‘shouldn’t cease folks from making unhealthy selections’
Interestingly, the editorial pointed to what it referred to as “Bitcoin’s many flaws,” together with “extreme volatility, high transaction costs, inadequate throughput, and a large carbon footprint.”
However, it isn’t the regulator’s job to “stop people from making bad decisions,” the editors stated, suggesting that the SEC as a substitute focuses on offering investor safety and guaranteeing that requirements are met within the crypto trade.
https://cryptonews.com/news/bitcoin-etf-approval-secs-regulatory-opportunity.htm
