The U.S. Securities and Exchange Commission (SEC) could approve a spot Bitcoin-ETF in mid-2023, according to Bloomberg analysts James Seyffart and Eric Balchunas.
New note out on why we think spot bitcoin ETFs will get approved in early Summer 2023. The SEC is proposing to expand the definition of “exchange” which would bring crypto platforms under SEC reg. After that (which could take a year) look for ETFs to get green light via @JSeyff pic.twitter.com/TtFgFXrJ8h
— Eric Balchunas (@EricBalchunas) March 24, 2022
“The SEC proposes expanding the definition of ‘exchange’, which would bring crypto platforms under the agency’s jurisdiction. After that (which could take a year), expect ETFs to get the green light,” Balchunas wrote.
On January 26, 2022, the SEC proposed to bring “alternative trading systems” under the regulator’s purview.
The publication did not directly mention digital assets. However Commissioner Hester Peirce criticised the initiative for its vague wording and stressed that crypto platforms could fall under the definition of ‘exchange’.
“The proposal contains extremely broad provisions, which, together with the apparent inclination of the SEC chair to regulate all things crypto, suggest that it will be used to supervise crypto platforms,” Peirce said.
Previously, Chairman Gary Gensler has repeatedly stated the need for tighter oversight of digital-asset exchanges. The official also urged the US Congress to develop a regulatory framework for such platforms and to extend investor-protection rules to them.
The SEC has not approved any applications to launch spot ETFs whose underlying assets are cryptocurrencies. In February 2022, Gensler explained the situation as the applications failing to meet the Securities Act standards for preventing fraudulent or manipulative practices.
As noted, the SEC delayed the decision on spot Bitcoin ETFs from WisdomTree and One River.