The US Securities and Exchange Commission (SEC) could approve all 12 pending applications for spot bitcoin exchange-traded funds (ETFs) by November 17. As of November 9, the SEC supposedly has a “window” to approve the 12 bitcoin spot. ETF filings, including Grayscale Investments’ conversion of its Grayscale bitcoin Trust product.
However, even if the SEC approves spot bitcoin (btc) ETFs before November 17, it could be more than a month before the product launches. The expected delay in launch following SEC approval would be due to the two-step process of launching an ETF. For an issuer to start a bitcoin ETF, it must obtain approval from the SEC’s Trading and Markets division in its 19b-4 filing and from its Corporate Finance division in its S-1 filing or prospectus. Of the 12 bitcoin ETF applications, nine issuers filed revised prospectuses showing that they have communicated with the Corporate Finance division.
Meanwhile, Nasdaq filed Form 19b-4 with the securities regulator on behalf of $9 trillion asset management firm BlackRock for a proposed ETF, the iShares ethereum Trust. The move signals BlackRock’s intention to expand beyond bitcoin with its crypto ETF aspirations. The fund has already registered the iShares ethereum Trust corporate entity in Delaware. At least five other companies are seeking SEC approval for an Ether (eth) spot ETF: VanEck, ARK 21Shares, Invesco, Grayscale and Hashdex.
CLARITY Act May Ban US Officials from Interacting with Tether’s Parent Company
U.S. Representatives Zach Nunn and Abigail Spanberger have jointly introduced the Creating Legal Accountability for Rogue technology and Innovators Act of 2023, or the CLARITY Act of 2023. The legislation aims to prohibit federal government officials from doing business with Chinese companies of blockchain. The law would prohibit government employees from using the underlying networks of the Chinese blockchain or cryptocurrency trading platforms. Additionally, it would explicitly prohibit US government officials from transacting with iFinex, the parent company of USDT issuer Tether.
keep reading
Forty-seven countries pledge to start exchanging crypto tax data by 2027
Forty-seven national governments have jointly committed to “rapidly transpose” the crypto Asset Reporting Framework (CARF), a new international standard on the automatic exchange of information between tax authorities, into their national legal systems. Developed from a G20 mandate in April 2021, the CARF framework requires reporting on the type of cryptocurrency and digital asset transaction, whether through an intermediary or a service provider. The authors of the declaration intend to activate exchange agreements for the exchange of information that will begin in 2027.
keep reading
The European Banking Authority proposes its guidelines for stablecoin issuers
The European Banking Authority (EBA), the European Union’s banking watchdog, has proposed new guidelines for stablecoin issuers to establish minimum capital and liquidity requirements. Under the proposed liquidity guidelines, stablecoin issuers must offer any stablecoin backed by a currency that is fully redeemable at par for investors. The official EBA proposal noted that stablecoin liquidity guidelines will act as a liquidity stress test for stablecoin issuers. The EBA believes that the stress test will highlight the shortcomings and illiquidity of the stablecoin. This can help the authority approve only fully backed stablecoins with sufficient liquidity reserve.
keep reading
