The United States Securities and Exchange Commission (SEC) recently announced the postponement of a potential decision regarding an application for a spot Ethereum exchange-traded fund (ETF) submitted by asset manager VanEck. This delay was outlined in a notice issued on March 20, where the SEC extended the time frame for approving or disapproving the Cboe BZX Exchange’s request to list and trade shares of the VanEck Ethereum ETF.

SEC postpones its decision on VanEck’s Ethereum ETF

The commission is now slated to make its final decision on the investment vehicle by May 23. The body justified this extension by stating that it requires additional time to thoroughly review the proposed rule change. The decision to delay was made to ensure that the commission has sufficient time to consider all aspects of the ETF application.

This development comes in the wake of the angency also extending deadlines for approving spot Ether ETFs from other entities such as Hashdex and ARK 21Shares. Bloomberg ETF analyst James Seyffart has expressed speculation that the current round of Ether ETF applications, which have deadlines in May 2024, may ultimately face denial.

Amid these deliberations, reports have surfaced suggesting that the SEC is investigating various firms for potential ties to the Ethereum Foundation. This investigation is part of broader efforts by the commission to determine the regulatory classification of Ether, particularly whether it should be considered a security. The outcome of this investigation remains unclear and could have implications for the approval of ETH ETFs.

Regulatory uncertainty and public response

It is noteworthy that the SEC has previously shown a willingness to approve investment vehicles linked to Ether futures, signaling a level of acceptance of the cryptocurrency as a commodity. However, the delay in VanEck’s ETF application has also opened the proposal to public comment, adding another layer of scrutiny and feedback to the process.

This decision by the SEC regarding Ether ETFs comes after the commission’s approval in January of allowing U.S. exchanges to list and trade shares of spot Bitcoin ETFs, a move that saw support from the majority of commissioners. Despite this, two U.S. Senators, Jack Reed and Laphonza Butler, have urged SEC Chair Gary Gensler to reject Ether ETF applications. They argue that approving such ETFs could pose significant risks to retail investors.

The SEC’s decision to postpone the approval or disapproval of VanEck’s spot Ethereum ETF application reflects the commission’s thorough review process and ongoing efforts to navigate the regulatory landscape surrounding cryptocurrencies like Ether. The outcome of this decision and the broader regulatory stance on Ether ETFs will likely continue to be closely monitored by market participants and investors alike.

Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0

PRC Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed