The SEC Seeks Community Input:
The Securities and Exchange Commission (SEC) has recently sought public input on the potential approval of Bitcoin ETFs proposed by Franklin Templeton and Hashdex.
This request follows a decision postponement by the SEC in November. It’s worth noting that Franklin Templeton and Hashdex submitted their applications at the beginning of September.
Currently, the U.S. regulator is raising concerns about the possibility of manipulation and fraud, as well as the role of Coinbase as a custodian if the ETFs are approved.
The Compliance with Security Standards
The SEC aims to understand whether the ETFs’ implementation complies with requirements for preventing fraudulent and manipulative practices and protecting investors and public interest.
The SEC’s initiative does not imply a preliminary conclusion, but rather invites thorough examination and public input on the proposed rule change.
“Opening a proceeding does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. On the contrary, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”
– states the SEC in the document
Comments Expected Within 3 Weeks
In addition to Franklin Templeton’s application, the SEC has also initiated similar proceedings for Hashdex’s Bitcoin Futures ETF application, considering converting it into a SPOT product.
Comments on both funds are expected within 21 days, followed by a two-week rebuttal period.
So far, the SEC has not approved any Bitcoin ETFs and has postponed all received applications for this product. The most optimistic estimates suggest that the SEC should make a decision before January 10, 2024.
