There are important developments in the cryptocurrency world. According to breaking information, the US Securities and Exchange Commission (SEC) announced that it has postponed Invesco & Galaxy’s Spot Ethereum ETF application. This decision is of great importance for the regulation of crypto assets and the future of the crypto industry. Additionally, the SEC’s newly adopted rules will require those who trade crypto assets to comply with federal securities laws. In addition, Minneapolis FED President Neel Kashkari’s views on the dollar and Bitcoin attracted attention. This has the potential to have a significant impact on the cryptocurrency market. Here are the details…
SEC delays Ethereum ETF application
The US Securities and Exchange Commission (SEC) announced that it has postponed Invesco & Galaxy’s Spot Ethereum ETF application. This decision was related to a proposed rule change that would allow Cboe BZX to list and trade shares of the fund. The proposed rule change was published in the Federal Register on November 8, 2023 and is open for comment, the SEC noted. Bloomberg’s ETF expert James Seyffart stated that this decision of the SEC is 100% expected and that there may be further delays in the coming months. In particular, it is stated that May 23 is a critical date for VanEck’s Ethereum ETF application.
SEC to adopt new rules
The SEC also reportedly gave approval to adopt rules that would require market participants with significant liquidity provider roles to comply with federal securities laws and provide regulatory coverage for cryptocurrencies. The 247-page regulation, which the SEC adopted by voting 3-2 in favor at its meeting today, was critical. Because it will be valid for those who trade in cryptos that meet the definition of securities or government securities.
According to the accepted rule, it was stated that the rules expected to affect decentralized finance (DeFi) will cover trading activities in crypto asset securities, including products, structures and activities in the DeFi market. These new regulations have caused controversy in the crypto industry. Because some commentators argue that the rule is unreasonable for DeFi products. However, SEC Chairman Gary Gensler drew attention to the $50 million exemption limit. In particular, he noted that the rule will be in demand in both the crypto and non-crypto space.
Minneapolis FED President commented on Bitcoin
Minneapolis FED President Neel Kashkari expressed doubts about the current state of the economy. Kashkari stated that he is skeptical about the need for a Central Bank Digital Currency (CBDC). Kashkari, who is optimistic about the role of the dollar in the world, continued his statements. Because he believes that the value of the dollar in the long run is determined by its economic competitiveness. Additionally, Kashkari touched on concerns about a potential recession. He specifically reassured that a recession was not his baseline scenario. However, regarding Bitcoin, Kashkari was quite clear. He described Bitcoin as ‘just another risky asset’. Thus, he argues that it is not an inflation hedge and there is still no justification for its existence.
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