How Will the SEC Respond?

 

Hi everybody! A day has passed since the adoption of a court decision in favor of Grayscale against the SEC regarding spot bitcoin ETFs. The market has received a strong bullish momentum, a congressman Warren Davidson (of course, a Republican) called for the resignation of Gary Gensler but we all understand that after euphoria comes a hangover and the SEC will not just give in.

What steps will the US securities regulator take now?

Let's leave the option that spot bitcoin ETFs will get the go-ahead in the short term. It would be too easy.

Although some experts are inclined towards this option, for example, one of the Blockchain Association leaders, Jake Chervinsky, said that the SEC would approve spot bitcoin ETFs to save face. The big question here: is there anything left to save? At least, to the crypto community. I repeat that the likelihood of such an outcome is minimum in my opinion.

What is left for Gary Gensler and his team to do?

 

Let's start with the worst option - since the reasoning part of the court's decision states that the SEC has not been able to explain what is the fundamental difference between bitcoin futures and spot and why spot is not approved if futures are allowed. In this case the regulator can simply ban future ETFs as well. Of course, this is unlikely but given how painfully the SEC reacts to judicial defeats, this should not be ruled out.

The second option is that the regulator will find new reasons for blocking spot bitcoin ETFs - this may be related, for example, to the storage processes and settlements of the first cryptocurrency. As you understand this issue has nothing to do with future ETFs.

And the third outcome, the most likely one in my opinion, which I have already announced - the SEC will delay the decision in every possible way. According to American laws and traditions, this can be done for quite a long time.

 

#SEC #blocking #bitcoinETF #Crypto #cryptocurrency