SEC postpones decision on cryptocurrency ETF pledge and physical redemption to early June
Recently, the U.S. Securities and Exchange Commission (SEC) announced that it would postpone its decision on two proposed amendments related to cryptocurrency ETFs, with new review deadlines of June 1 and June 3, respectively.
The first resolution postponed by the SEC was to extend the review period of Grayscale's Ethereum (ETH) pledge application to June 1, 2025. The proposal allows Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH) to pledge part of the custodial ETH.
The amendment was originally submitted by Grayscale on February 14 and published in the Federal Register on March 3, with a preliminary decision deadline of 45 days, that is, April 17.
But the SEC extended its review period under Section 19(b)(2) of the Securities Exchange Act of 1934, arguing that more time is needed to evaluate rule changes and related issues.
In addition, the SEC also postponed its decision on another proposal from Cboe BZX Exchange regarding the physical creation and redemption of VanEck Bitcoin Trust (HODL) and VanEck Ethereum Trust (ETHV).
The amendment, submitted on February 19 and published on March 5, will modify the terms for the creation and redemption of trust shares using digital assets instead of cash.
The initial 45-day review period was originally scheduled to expire on April 19, but the SEC has extended it to June 3 for further deliberation.
In summary, these two postponed resolutions also reflect the SEC's cautious approach in dealing with cryptocurrency-related proposals, and also show that regulators need more time to ensure compliance and market stability when evaluating these complex issues.
What do you think of the SEC's decision to postpone the staking and physical redemption of cryptocurrency ETFs? Do you think the SEC needs to be cautious in the current loose government environment? See the comments section!
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