International Investment Bank: SEC to Approve Bitcoin Spot ETF to Avoid Recurrence of Gray Case Defeat
International investment bank TD Cowen believes that the U.S. Securities and Exchange Commission (SEC) will approve a Bitcoin spot ETF in order to avoid litigation and potential loss resulting from the rejection. This decision is also made to demonstrate that existing regulations are sufficient to regulate cryptocurrencies.
The SEC’s approval of a Bitcoin spot ETF is based on political considerations and the desire to avoid the establishment of separate laws for cryptocurrencies, as well as to solidify the position of cryptocurrency regulators.
It appears that this decision contradicts SEC Chairman Gary Gensler’s consistent statement that existing regulations are adequate for cryptocurrency regulation.
If the approval is denied, TD Cowen believes that the SEC may face lawsuits from issuers and is likely to lose the case. Given the SEC’s previous loss in the Grayscale case, the SEC will make every effort to avoid a similar occurrence.
January 10th is the deadline for the SEC’s final decision on whether to approve Bitcoin spot ETF applications from companies such as ARK Investment and 21Shares. The SEC may also make rulings on other similar applications at that time, including those from more than ten ETF issuers such as BlackRock and Fidelity.
In addition to the focus on Bitcoin spot ETFs, the past year has also seen attention to cryptocurrency policies, including bills led by the Republican Party. One bill aims to regulate stablecoins at the federal level, while another bill takes a comprehensive regulatory approach to the cryptocurrency market structure.
According to TD Cowen, there is still a chance to pass cryptocurrency market structure legislation during the “lame duck” period. As the Chairman of the House Financial Services Committee, Patrick McHenry, is about to step down, he hopes to complete this work during his tenure.
If the cryptocurrency market structure legislation cannot be passed, the stablecoin bill will become McHenry’s backup plan.
