The SEC’s Decisions and Their Impact on the Crypto Industry

The SEC’s Decisions and Their Impact on the Crypto Industry

As the calendar flips to October, all eyes in the crypto community are fixed on the US Securities and Exchange Commission (SEC). A crucial decision awaits the SEC regarding their case against asset manager Grayscale. The deadline for an appeal is October 13, exactly 45 days from the court’s ruling. On August 29, the District of Columbia Court of Appeals ruled in favor of Grayscale, stating that the SEC failed to provide a valid reason for denying their application. The court ordered a review of the application by the SEC. Currently, the agency is reviewing the court’s decision before deciding on the next course of action – whether to appeal or not.

If the SEC decides to appeal, it will undoubtedly cast a shadow over the crypto community. An appeal would extend the waiting period for a Spot Bitcoin ETF, which has long been anticipated by crypto enthusiasts. The delay in the SEC’s decision would cause disappointment and frustration among market participants. Additionally, it would further elongate the process of aligning the spot and futures markets. The SEC’s argument, claiming that the spot market is more susceptible to fraud and manipulation, would lose its credibility if they choose not to appeal.

The month of October also marks the second deadline for several pending spot Bitcoin ETF applications. The SEC will have to make decisions on whether to approve, deny, or delay these applications. Notable dates to watch for include October 16 and 17. October 16 marks the second deadline for a decision on the Bitwise Bitcoin ETP Trust. On the other hand, October 17 is a crucial day for the SEC to decide on applications from iShares Bitcoin Fund, VanEck Bitcoin Trust, Wisdomtree Bitcoin Trust, Invesco Galaxy Bitcoin ETF, and Wise Origin Bitcoin Trust.

Market experts anticipate that the SEC will likely choose to delay its decision on these applications once again. This outcome has become a recurring pattern, and the next deadline for a decision will consequently be pushed to the following year. The earliest final response could come on January 10, 2024, which is the final deadline for the ARK 21Shares Bitcoin ETF. As these delays continue, market participants and investors eagerly await a swift and definitive ruling from the SEC.

The SEC’s looming decisions have the potential to significantly impact the crypto industry. The outcome of Grayscale’s case appeal, along with the subsequent decisions on spot Bitcoin ETF applications, will shape the future landscape for both investors and crypto enthusiasts. The anticipation and uncertainty surrounding these decisions contribute to the volatility and unpredictability of the market. As October unfolds, all stakeholders eagerly await the SEC’s verdict, hoping for clarity and positive developments that will propel the crypto industry forward.


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