Fox reporter Eleanor Terrett has recently brought attention to a crucial procedural element within the U.S. Securities and Exchange Commission (SEC) that could potentially influence the fate of the highly anticipated spot Bitcoin Exchange-Traded Fund (ETF) approval. This revelation has generated significant interest and speculation within the crypto community.
Terrett’s tweet on January 9th shed light on an important nuance of the SEC’s decision-making process. While there is no scheduled commission vote on the Bitcoin ETF, each of the five SEC commissioners retains the right to request a review and a full commission vote. This procedural aspect has the potential to cause delays in the approval process, much to the anticipation of the crypto community.
Anne Kelley’s tweet, which was in response to Terrett’s revelation, focused on a little-known clause, 17 C.F.R. Section 201.431. This clause grants any single SEC commissioner the ability to require the full Commission to review a matter that was previously approved through staff-delegated authority. It serves as a tool for non-chair commissioners to enhance transparency in the SEC’s decision-making process.
Eric Balchunas, a senior Bloomberg ETF analyst, expressed confidence in the approval process under SEC Chair Gensler’s direction, commenting on Terrett’s tweet. Balchunas suggested that the staff’s diligent work with issuers indicated a plan for approval and advised against over-complicating the situation. His input provides a valuable perspective regarding the potential outcome of the Bitcoin ETF approval.
Justin Slaughter, policy director at Paradigm, highlighted the SEC’s ability to vote on matters without a formal meeting through the “seriatim” process. This process allows for more efficient decision-making by individual commissioners, potentially expediting the approval process.
Anne Kelly’s subsequent tweet emphasized the potential for the aforementioned clause to add time to the approval process, raising the question of whether a commissioner might request a full commission vote. This uncertainty adds to the anticipation surrounding the Bitcoin ETF approval.
Terrett, in an earlier tweet on January 2, expressed skepticism about an imminent spot Bitcoin ETF approval, citing vacations and work overload at the SEC. Drawing parallels to the Ethereum futures approval in October 2023, she suggested that the approval process for the spot Bitcoin ETF might extend beyond the immediate deadline.
In another tweet, Terrett revealed that the SEC and major exchanges such as Nasdaq, CBOE, and NYSE were holding meetings regarding the spot Bitcoin ETF applications. These meetings provide issuers with an opportunity to address any shortcomings in their applications, bringing them closer to approval. However, with the January 10 deadline looming, the outcome of these meetings and the SEC’s final decision remain uncertain.
The recent procedural aspect within the SEC has added an additional layer of complexity and uncertainty to the approval process of the spot Bitcoin ETF. While the SEC commissioners’ power to request a review and a full commission vote can potentially cause delays, analysts and experts offer reassurance that the approval process is underway. The meetings between the SEC and major exchanges further indicate progress in the application process. As the crypto community eagerly awaits the SEC’s decision, it remains to be seen how this procedural nuance will shape the future of the Bitcoin ETF.
Leave a Reply