The U.S. Securities and Exchange Commission (SEC) once again captures the attention of the cryptocurrency market, this time due to Grayscale’s application for a Bitcoin ETF approval. Latest reports suggest that a key discussion might be on the horizon.
SEC’s closed meeting: A game-changing move
The SEC has scheduled a confidential meeting with key officials, including commissioners, commissioners’ advisors, the commission secretary, and recording secretaries. The objective? Review of claims related to settlements and rulings, marking a pivotal moment in the Grayscale ETF saga.
This move follows a recent deadline that passed without an appeal from the court ruling of August 29, 2023, supporting the transformation of Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF.
Moreover, the D.C. Court of Appeals’ decision on October 23, 2023, directing the SEC to reconsider the Grayscale ETF application, emphasized striking similarities between Grayscale’s application and previously approved ETFs for Bitcoin futures contracts. The stage is set for an approval process in due course, paving the way for the first-ever US-based Bitcoin ETF.
Comprehensive meeting agenda
The agenda for the meeting scheduled for November 2, 2023, is extensive and addresses various aspects of the SEC’s responsibilities. Discussion topics include:
- Introduction and regulation of injunctive actions.
- Introduction and regulation of administrative proceedings.
- Settlement of judicial claims.
- Other issues related to investigations and enforcement proceedings.
The question remains whether the SEC will seek an extension before making a decision. The expiration of the October 13, 2023 deadline has already accelerated the approval process timeline, making it a fascinating area to watch.
Grayscale’s unique advantage: Timing and precedent
Although dominant market opinions suggest that the SEC might approve all existing ETF applications simultaneously, Grayscale’s application holds a unique advantage in terms of timing. The court ruling from August 2023, which dismissed the SEC’s arguments against the ETF application, has placed Grayscale at the forefront.
It’s worth noting that Mike Novogratz, CEO of Galaxy Digital, has expressed optimism about the Bitcoin ETF approval. He stated that he expects it to be approved by the SEC in 2023, which, if true, will mark a significant milestone for the cryptocurrency industry.
As the Grayscale Bitcoin ETF application is being reconsidered by the SEC, the digital asset market holds its breath, awaiting the regulator’s verdict in this landmark case.
Photo by Scott Graham on Unsplash
