SEC announces more delays on crypto ETF decisions
The commission still can’t seem to come to terms with the reality of cryptocurrency
Like it or not, cryptocurrency is here to stay. Those who talk out against its continued adoption don’t understand the true value it holds. That value isn’t predicated on over-the-moon gains but, rather, on digital currency’s ability to properly shape the global economy. Despite having more than enough information at its fingertips to understand crypto, the Securities and Exchange Commission (SEC) is still dragging its feet on allowing certain crypto-based financial vehicles to be offered and doesn’t appear to be ready to change its tune anytime soon.
Since July of last year, the SEC has received a number of rule change requests from established entities that want to introduce crypto-based exchange-traded funds (ETF). Also since July of last year, the commission has repeatedly said that it needed more time to evaluate those requests before making a decision. Like a broken record, it has issued the same response for three more ETFs, asserting, “The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.”
One of the three ETFs is a planned project between VanEck and SolidX. It filed its first rule change proposal in July of last year before the SEC announced subsequent delays in reaching a conclusion. This past January, the proposal was pulled and then resubmitted, ostensibly to offer better clarification in accordance with SEC rules. However, the gist of the proposal was the same, and the SEC has now asserted that it won’t make a decision until at least his October.
The second delay was seen with the Bitwise Asset Management ETF. The SEC has postponed offering a response until October 13 because it wanted “sufficient time” to consider the request. The same excuse was applied to the ETF submitted by Wilshire Phoenix, but its ruling is expected sometime in September.
The SEC doesn’t need more time to consider the proposals. If more than a year isn’t enough, then perhaps it’s time for a regime change in the SEC to individuals better prepared to take their jobs seriously.