As we approach October, the global crypto community eagerly awaits crucial decisions from the U.S. Securities and Exchange Commission (SEC). These determinations hold the power to significantly shape the crypto landscape and influence stakeholders across the board. In this article, we'll delve into the pivotal SEC choices looming on the horizon and their potential ramifications.
SEC's Pending Appeal: An Imminent Decision
One of the most critical decisions on the SEC's docket is whether to pursue an appeal against asset manager Grayscale. The deadline for this decision looms on October 13, precisely 45 days from the court's ruling. In a significant development on August 29, Grayscale achieved a milestone victory when the District of Columbia Court of Appeals ruled that the SEC had failed to provide a valid rationale for rejecting Grayscale's application, mandating the SEC to reevaluate the application.
Post the court's ruling, a spokesperson for Grayscale stated their intent to carefully assess the decision before charting their next course of action. If the SEC chooses to pursue an appeal, it can opt for two avenues: filing a "writ of certiorari" with the U.S. Supreme Court, requesting a review of the case, or initiating an "en banc" review, where all judges of the D.C. Court of Appeals would conduct an additional review of the case. An appeal by the SEC would undoubtedly cast a shadow over the crypto community, potentially prolonging the wait for a Spot Bitcoin ETF.
However, in the event that the Commission decides against pursuing an appeal, it will establish a precedent equating the spot and futures markets. Moreover, the SEC's argument that the spot market is more susceptible to fraud and manipulation would lose its footing.
Pending ETF Applications: October's Crucial Milestones
Another pivotal event set for October involves the SEC's decisions on several pending spot Bitcoin ETF applications. The SEC must either approve, reject, or further delay these applications. Key dates to watch out for include October 16 and 17. October 16 marks the second deadline for a decision on the Bitwise Bitcoin ETP Trust. Meanwhile, October 17 serves as the second deadline for the SEC to make determinations on the iShares Bitcoin Trust, VanEck Bitcoin Trust, Wisdomtree Bitcoin Trust, Invesco Global Bitcoin ETF, and Grayscale Bitcoin Trust.
Expectations are high that the SEC will likely opt for further delays in its decision-making process, with the next decision deadline extending into the coming year. If the SEC continues extending its deliberations, the earliest a final response might emerge is on January 10, 2024, the deadline for the ARK 21Shares Bitcoin ETF.
Potential Positive Outcomes
Amidst the anticipation and uncertainties surrounding these decisions, October may still offer some promising prospects for the crypto industry. Rumors suggest that the SEC is considering greenlighting the launch of Ethereum futures ETF applications. Volatility Shares is projected to unveil its offering on October 12, with other launches expected to follow suit.
In conclusion, as October unfolds, the crypto world's attention remains fixated on the SEC's pivotal decisions. These determinations hold the power to reshape the industry's landscape, impacting participants from all corners. Whether it's the pursuit of an appeal against Grayscale or the fate of pending ETF applications, the outcomes will undoubtedly reverberate through the crypto sphere, influencing its trajectory in the coming months. Stay tuned for the developments in this ever-evolving landscape.